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

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2009

                                  ----------

                            WEDNESDAY, MAY 14, 2008

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Ted Stevens presiding.
        Present: Senators Leahy, Dorgan, Durbin, Mikulski, Murray,
    Stevens, Cochran, Domenici, and Bond.

                             DEPARTMENT OF DEFENSE

                                    Reserves

    STATEMENT OF LIEUTENANT GENERAL JACK C. STULTZ, CHIEF
                AND COMMANDING, UNITED STATES ARMY RESERVE

                    OPENING STATEMENT OF SENATOR TED STEVENS

        Senator Stevens. Gentlemen and ladies, the chairman will
    not be here for a while and may not be here at all this
    morning. I want to put his statement in the record and welcome
    all of you, the chiefs of the Reserve components who will
    testify before us on the status of the Reserve components.
        [The statement follows:]

                 Prepared Statement of Senator Daniel K. Inouye

        Today the Subcommittee meets to receive testimony on the
    fiscal year 2009 budget requests for the National Guard and
    Reserve components. From the Reserve we welcome: Chief of the
    Army Reserve, General Jack Stultz; Chief of the Naval Reserve,
    Admiral John Cotton; Commander of the Marine Forces Reserve,
    General John Bergman; and Chief of the Air Force Reserve,
    General John Bradley. And from the National Guard we are
    pleased to have: Chief of the National Guard Bureau, General
    Steven Blum; Vice Chief of the Army National Guard, General
    Clyde Vaughn; and Vice Chief of the Air National Guard, General
    Craig McKinley.
        Gentlemen, as the National Guard and Reserve components
    continue to transition from a strategic to operational reserve,
    you face significant personnel and equipment challenges.
    Currently we have thousands of guardsmen and reservists
    deployed to Iraq and Afghanistan, many of them already on their
    second tour. We are asking a great deal of these service
    members, their families, and employers. Unlike their active
    duty counterparts, they often do not have easy access to
    support services. Today we look forward to hearing what is
    being done to ease the strain through family support and
    reintegration programs.
        It is a credit to the dedication and patriotism of our
    reservists that retention levels remain strong despite the high
    operational tempo and mandated force realignments. We want to
    make sure that you have the resources required to retain these
    talented experienced service members, particularly those in
    high demand career fields. We are pleased to see that
    recruiting has improved for the Air National Guard, and Army
    and Navy Reserves, although we are concerned that many of the
    components face shortfalls in high demand, critical skill
    specialties. We hope to hear today what you are doing to
    continue to attract quality recruits.
        Equipment shortages are another ongoing challenge,
    particularly now that more pre-deployment training is being
    done at home station. While the Subcommittee is pleased to see
    that the Army has dramatically increased procurement requests
    for the Guard and Reserve, existing equipment levels remain a
    concern. We want to ensure that you have the equipment you need
    for training and operations at home and abroad.
        Gentlemen, I look forward to hearing your perspective on
    these issues and your recommendations for strengthening our
    forces during this demanding time. I thank you for your
    testimony this morning.

        Senator Stevens. General Stultz, it is good to see you with
    us again today.
        I understand, Admiral Cotton, this will be your last
    appearance, retiring now after 34 years in the service. We are
    grateful for your service to our country and appreciate all you
    have been able to accomplish to enhance the Reserve components.
        General Bergman, I understand you also will retire now
    after 38 years.
        General Bergman. Yes, sir.
        Senator Stevens. We wish you also the best and sincerely
    appreciate your service to the country.
        And General Bradley, you are retiring after 41 years. It
    has been a pleasure working with you, particularly these last
    few years. I will never forget the F-22s coming in to
    Elmendorf. It was really a great day for us.
        General Bradley. Thank you, Senator Stevens.
        Senator Stevens. I wish you continued success in your
    future.
        The Reserve components have changed drastically since
    September 11, 2001. It has been remarkable how quickly you all
    have been able to transition from what was purely a strategic
    reserve force to an operational one. The total force concept is
    working. I know there are many challenges that still remain as
    the active components rebalance and reset. I am confident that
    you will point your respective services in the right direction
    to fully support the missions that will be presented to you in
    the future. We thank you all for your service and look forward
    to the testimony today.
        As I said, I will put the chairman's statement in the
    record.
        I would call on Senator Leahy.
        Senator Leahy. I will be coming back and I will yield to
    Senator Mikulski. I have to go to a Judiciary matter, but I
    will be back.
        I also echo the comments to Admiral Cotton and the others.
    You have a tremendous lineup here. I know these gentlemen. Of
    course, I know their service as well. I think it is a credit to
    all of us that they are willing to serve and serve so well.
        Senator Stevens. Senator Mikulski.
        Senator Mikulski. Mr. Chairman, in the interest of time, I
    do not have an opening statement. I want to welcome, of course,
    our leadership and look forward to hearing the needs that they
    face in order to fulfill the mission and look forward to it and
    thank them for being here.
        Senator Stevens. Thank you.
        Gentlemen, all of your statements will be put in full in
    the record. We appreciate whatever comments you want to make
    this morning. General Stultz, we will call on you first,
    please.

                        INTRODUCTION OF RESERVE SOLDIERS

        General Stultz. Yes, sir. Mr. Chairman, Senator Mikulski,
    thank you for giving us the opportunity to come and talk to you
    today. As you indicated, I have submitted my statement for the
    record.
        Rather than taking time to make any further opening
    comments, what I did want to do today, sir, is to introduce a
    couple of people that I brought along with me. One, my command
    Sergeant Major, Leon Caffe, the senior enlisted soldier for the
    Army Reserve representing our 200,000 soldiers, who is here
    with me.
        But also I wanted to introduce two great soldiers, just to
    give you a flavor of the quality of what we have got in the
    Reserve components today.
        The first gentleman I have got is Captain Joe Webster. Joe?
    Joe is an Army Reserve soldier. He is a lawyer here in
    Washington, DC, a partner in a firm that handles Indian affairs
    throughout this Nation, very well known.
        What is unique about Joe, though, is in 1990-91, Joe was in
    school at Purdue University, stopped his education, joined the
    Army Reserve, and deployed for Desert Storm as a legal clerk,
    specialist 4, legal clerk. He came back after 1990-91, went
    back to Purdue, finished his undergraduate, went to George
    Washington University here in Washington, DC, and got his law
    degree, and became a very successful partner in a law firm here
    in Washington, DC.
        After 9/11, Joe said, I need to go serve my country again.
    So he joined the Army Reserve again, got into one of our legal
    units. He deployed last year and was in Iraq for the entire
    year last year serving General Odierno of the Multinational
    Corps Iraq on his legal staff handling legal matters. He is a
    true representative of what this Nation is all about:
    individuals that are willing to put their careers, put their
    lives on hold, leave their families, and risk their lives to go
    and serve their Nation on a volunteer basis.
        The other soldier I have with me is Master Sergeant Marie
    Brooks. Sergeant Brooks again represents what this Nation is
    all about. You see, Sergeant Brooks' father is retired
    military. Sergeant Brooks is one of our master sergeants in the
    Army Reserve. Her son is an active duty soldier also, currently
    stationed in Germany as a medic. Three generations of soldiers
    in that family. Sergeant Brooks is a chaplain's assistant for
    us.
        She deployed to Kuwait and Iraq in 2003 as part of a
    medical command, serving as a chaplain's assistant, and
    provided chapel services throughout the theater when we were
    short chaplain officers, as the NCO Corps does, steps up, makes
    it happen, and she was conducting seven different types of
    services at Camp Arifjan Kuwait to service all the soldiers,
    about 20,000-some soldiers that were there to provide religious
    support, counseling, whatever the need while she was deployed
    for that year in 2003.
        She now works also for us helping assist at the Officer
    Candidate School at Fort Benning, Georgia on a regular basis.

                               PREPARED STATEMENT

        But these are two great soldiers, sir, that I just wanted
    to introduce, have the opportunity to talk about what quality
    we have, what dedication we have in our Reserve components.
        I look forward to your questions, sir. Thank you.
        Senator Stevens. Thank you very much. Captain Webster,
    Master Sergeant Brooks, we welcome you and thank you for your
    service.
        [The statement follows:]
            Prepared Statement of Lieutenant General Jack C. Stultz
                                  introduction
        Chairman Inouye, Senator Stevens, members of the Senate
    Appropriations Defense Subcommittee, thank you for calling this hearing
    on the fiscal year 2009 budget for our Reserve components. As you know,
    after September 11th, the Nation's Reserve components were challenged
    to evolve from a strategic force in reserve to an operational force
    that is constantly deployed. It literally happened overnight. And now
    during the seventh year of this persistent conflict, demand for Army
    Reserve warrior citizens is such that between 25 and 30,000 Army
    Reserve soldiers are mobilized at any given time in the United States
    and in 18 other nations around the globe.
        Last month the Army Reserve celebrated its 100th anniversary.
    During our centennial celebration, soldiers from every State took the
    oath of re-enlistment here on Capitol Hill; committing to at least
    another 2 years of service to our Nation in the Army Reserve. When the
    Medical Reserve Corps originated on April 23, 1908 with 160 civilian
    physicians, it was unforeseen that 100 years later 12 to 15 percent of
    our force would be fully engaged in theater an operational force
    providing key capabilities to the Army.
        We continue to meet our mission because our soldiers are committed
    to serve the Nation, even as we undergo dynamic institutional and
    operational changes that challenge our state of readiness. And like the
    Active Component, the Army Reserve is a force that is out of balance
    but we are not broken. Historically, the Army Reserve has been a cost-
    effective, value-added force as evidenced by what we accomplished with
    the fiscal year 2007 budget Congress appropriated to us. That budget
    request of $6.9 billion represented only 3.1 percent of the total Army
    budget, yet we:
      --Mobilized more than 30,400 warrior citizens;
      --Recruited 39,055 soldiers;
      --Retained 19,727 soldiers (119 percent of our retention goals);
      --Launched the Army Reserve Warrior and Family Assistance Center;
      --Accelerated reorganization of the entire Army Reserve Training
            Structure;
      --Executed two major warrior exercises involving more than 8,000
            soldiers;
      --Moved 6,700 pieces of unit equipment to regional training centers;
      --Aligned 78 percent of our strength into operational and deployable
            forces;
      --Overhauled 4,139 pieces of equipment in the $144 million depot
            maintenance program;
      --Fielded more than 17,000 items of equipment;
      --Increased our aviation force structure by two Blackhawk companies;
      --Activated and deployed the 316th Expeditionary Support Command--the
            primary logistics command supporting multinational forces in
            Iraq;
      --Activated the 11th Theater Aviation Command;
      --Activated or converted 386 organizations to new modular structure;
      --Initiated the disestablishment of 12 Regional Readiness Commands;
      --Initiated the establishment of 4 Regional Support Commands and 11
            Operational Commands;
      --Commissioned two water vessels; and,
      --Initiated 23 BRAC and military construction projects.
        More than 193,900 warrior citizens have mobilized since 9/11; they
    represent America's best and brightest. Our soldiers, their families
    and employers; however, are experiencing an operational tempo unlike
    their comrades in arms who served before them. As you know, earlier
    this year, the report released by the Commission on the National Guard
    and Reserves concluded that the Nation will continue to rely on the
    Reserve components as part of an operational force for missions at home
    and abroad. To accomplish this, the report concluded, reforms are
    needed to ensure the readiness of the Reserve components and to ensure
    our feasibility and sustainability over the long term.
        To achieve our goal of transforming from a strategic force in
    reserve to an integrated, operational force, the Army Reserve relies on
    continued support from Congress via fiscal and supplemental budgets.
    Today, even though our mission has increased, our funding has not moved
    significantly beyond resource levels of the Cold War. Our fiscal year
    2008 budget request of $7.1 billion represents 4 percent of the Army
    base budget. We are grateful for your support, our state of readiness
    relies on it, but our readiness is also impacted by our transformation,
    the operational tempo, the stress on our soldiers, their families and
    employers, and the state of our equipment. All challenges we continue
    to address.
                                    overview
        I am here to discuss the President's budget request for fiscal year
    2009 and what it means to the Army Reserve. I will separate the budget
    request in to three categories, Reserve Personnel, Army (RPA);
    Operation and Maintenance, Army Reserve (OMAR); and Military
    Construction, Army Reserve, (MCAR).
        In an environment of scarce human resources, RPA appropriations are
    vital for the Army Reserve to maintain our readiness by recruiting and
    retaining warrior citizens. The RPA appropriation increased 6 percent
    to $3.9 billion which includes $321 million for recruiting and
    retention bonuses. These bonuses are critical to the Army Reserve to
    sustain our effort to exceed our end strength of 205,000 soldiers. For
    the first time in the 35 years since the birth of our all-volunteer
    force, we must recruit and retain our force during a period of
    protracted war. Traditionally, the Army Reserve has not grown its own
    force. We have relied on soldiers who came off Active duty, but that's
    not happening any more. Now, our Reserve soldiers are either leaving
    the service at the end of their commitment or they are going back on
    active duty. Last year 7,107 warrior citizens transferred to the active
    Army. So while our force is contributing to the end strength of the
    Army, we impede our ability to reach our own end strength. We are short
    about 10,000 soldiers and that affects our readiness should our force
    be called to respond to another contingency at home or abroad.
        The RPA also includes $195 million for 47,000 soldiers to attend
    professional military education. These schools are essential for the
    Army Reserve to support higher occupational skill qualification rates.
    We are not only interested in recruiting Army Reserve soldiers who want
    to serve their country--we want to provide soldiers the skills to
    better themselves and to give back to their community.
        Our request for resources to increase the Active Guard Reserve end
    strength by 300 soldiers was also included in the fiscal year 2009
    budget, and we appreciate the President's support. But we must also
    rely on the fiscal year 2009 supplemental request so the Army Reserve
    can continue to evolve to a more fully integrated operational force.
    The Army Reserve has requested $80 million for additional training days
    for approximately 20,000 soldiers and another $82 million to resource
    up to 17 days of special pre-mobilization training. These funds are
    critical for the Army Reserve to properly prepare soldiers and units as
    they ready to deploy.
        As you know, the process that is driving much of our organizational
    change is the Army Force Generation or ARFORGEN model. ARFORGEN aligns
    Army Reserve units into 5-year cyclical training and force sustainment
    packages.
        Full implementation of ARFORGEN will improve our force by providing
    a predictable and rapid capability to synchronize our soldiers and
    resources with national and global mission requirements to increase
    unit readiness and provide a progression of trained, ready, and
    cohesive units. We have aligned approximately 80 percent of Army
    Reserve units into the ARFORGEN process, and we are working toward
    achieving the 4 years at home to 1 year deployed objective.
        The President's fiscal year 2009 budget request is essential to
    implementing ARFORGEN. The $2.6 billion in the budget for OMAR is a 5.8
    percent increase over fiscal year 2008 and includes $66 million to
    support Army Reserve force structure rebalancing, increased training
    events and equipment. Our rebalance will replace less-equipment
    intensive units with more equipment-intensive units resulting in an
    increase demand for fuel, parts and sustained maintenance. Resources
    for base support services to 1,100 Army Reserve activities are funded
    at $548 million, which translates to 92 percent of our essential needs
    with an increased emphasis on family programs and youth services. The
    $256 million for sustainment, restoration, and modernization in the
    President's fiscal year 2009 budget will allow the Army Reserve to
    continue to reduce our facility maintenance backlog by increasing our
    commitment to restore our facilities sustainment program worldwide to
    an adequate readiness level.
        Our operational tempo is particularly difficult on families.
    Although we recruit soldiers, we retain families. Our readiness depends
    on the ability to provide predictability to our soldiers, their
    families and employers. As with RPA resources, the Army Reserve must
    rely on the fiscal year 2008 GWOT supplemental request for OMAR funding
    to ensure we take care of soldiers and their families. Our supplemental
    request includes $22.9 million for family programs, $4.1 million for
    the strong bonds program, $13.7 million for tuition assistance, and
    $3.6 million for post deployment health reassessments. The OMAR
    supplemental request also includes $23.7 million to offset rising fuel
    costs.
        Our warrior citizens are the core of your Army Reserve. Warrior
    citizens bring maturity, experience, and civilian-acquired skills to
    the Army. In theater, you cannot tell the difference between an active
    Army soldier and our warrior citizens. However, off the battlefield,
    the demands on our warrior citizens are great; in many respects greater
    than those an active duty soldier faces. Our soldiers must balance
    civilian careers with military and family obligations; and most of our
    families do not reside near military installations. Warrior citizens
    must manage a delicate balance with employers who are often left with
    one less employee to conduct business. This balance is made the more
    challenging for our soldiers by the Army Reserve's high operational
    tempo and ongoing organizational change.
        The President's fiscal year 2009 budget request for MCAR is $281.7
    million, which will allow the Army Reserve to invest in building five
    Army Reserve centers and to modernize Army Reserve centers in four
    States. The end result will be 15 Reserve Centers supporting nearly
    5,000 warrior citizens and four training ranges. We have also built in
    minor military construction funds to address unforeseen critical needs
    or emergent mission requirements that cannot wait for the normal
    programming cycle.
        The bottom line, this persistent conflict requires the Army Reserve
    to transform from a strategic force in reserve to an operational force.
    The Army cannot sustain this operational tempo without our warrior
    citizens and their contributions to the total force.
        As the Army Reserve evolves to a more fully integrated operational
    force we recognize we cannot overlook the critical contribution
    employers make to national defense. The citizen soldier legacy is built
    on the backbone of citizens and employers sacrificing together to
    ensure our security. Employers are looking for the same skilled,
    capable, disciplined personnel we are. We can and should cooperate with
    industry in a number of ways for our mutual advantage: recruiting,
    training and developing the best and the brightest to serve. For our
    part, the Army Reserve develops discipline, soldier and leader skills
    that are valuable to employers. Working with industry we can help
    employers fill occupational specialties where there have been
    traditional shortages of personnel. While we share an employee's
    talents and skills we can surely find ways to share the cost of
    benefits to our mutual advantage.
        Last month, I was proud to launch our Employment Partnership to
    foster formal relationships between the U.S. Army Reserve and private
    sector. We signed agreements with INOVA Health Systems and the American
    Trucking Association. In the future, we hope to enter into comparable
    partnership projects with law enforcement, corrections, transportation,
    and other industry organizations leveraging Army Reserve core skill
    sets.
        To improve Army Reserve personnel readiness, we rely on continued
    support from Congress to provide stable and predictable resourcing and
    the authority for flexible management of incentives to recruit, retain,
    reassign, promote, and train our personnel.
        As the first Federal Title 10 responder to support civil
    authorities during a domestic emergency, the Army Reserve is an
    important element of the current DOD ``Lead, Support, Enable'' strategy
    for Homeland Defense and Civil Support. Unit readiness for current and
    future peacetime contingency and major combat operations at home or
    abroad requires timely, predictable personnel resourcing and a full
    complement of equipment.
        During our first 100 years, the Army Reserve repeatedly provided
    the most cost-effective Federal force to the Nation. Continued support
    with resources and authorities from Congress ensures your Army Reserve
    is ready to serve the Nation any time, any where, now and in the
    future. Thank you for the opportunity to review the impact of the
    President's fiscal year 2009 budget request for the Army Reserve. I
    look forward to your questions.
                                     ______

               United States Army Reserve 2008 Posture Statement
                                                         April 1, 2008.
        Today's Warrior Citizens serve our Nation during an era of
    persistent conflict--a role unforeseen when the Army Reserve originated
    on April 23, 1908, as the Medical Reserve Corps. One hundred sixty
    civilian physicians comprised this first strategic reserve, one that
    could be ordered by the Secretary of War to active duty during a time
    of national emergency. A century later, the U.S. Army Reserve is a
    diversified, capable, skill-rich, community-based operational force
    with an authorized end strength of 205,000 Warrior Citizens.
        Throughout our first century of service, our mission was to support
    the Army to ensure mission success, and our Soldiers served with pride
    and distinction. In the final decade of the 20th century, the Army
    Reserve was called upon to support training, coalition-building, and
    stability missions, as well as foreign and domestic contingency
    operations. At the dawn of this century, with further demands placed on
    our Nation's military after September 11, 2001, it became necessary for
    the Army Reserve to transform to a more fully operational force.
        Today, the 21st century Army Reserve Soldier is a Soldier who
    serves in an expeditionary force that is an integral part of the
    world's best Army. Yet, as we have done for the past 100 years, our
    Soldiers live and work in their civilian communities while volunteering
    to serve their Nation in the U.S. Army Reserve. In the past six years,
    190,796 Army Reserve Soldiers have mobilized and deployed in support of
    the Global War on Terror. Currently 27,143 Warrior Citizens from
    communities around the Nation are serving in Iraq, Afghanistan, and in
    18 other countries. They serve at a time when the stakes for our Nation
    and our national security are high, the demands on our force are
    significant, and the need for a strong Army is undeniable.
        As we move forward in our transformation, we are undergoing the
    most dramatic change to our force structure, training, and readiness
    since World War II. However, as we continue to transform, one thing
    does not change--the Army's reliance on our Army Reserve Warrior
    Citizens' civilian-acquired skills, skills that are critical to the
    Army's success. As a result of the continuous state of mobilization and
    a high operational tempo, the Army Reserve has experienced stress on
    our Soldiers and their units, stress on their Families, stress on their
    employers, and stress on our equipment. We have come to realize that
    while we remain a committed, professional, All-Volunteer Force, the
    Army Reserve, like the Active Component, is increasingly out of
    balance.
        To help us build capacity and increase our military effectiveness,
    we have aligned our needs into four imperatives: to sustain our
    Soldiers, their Families, and employers; to prepare our Soldiers for
    success in current operations; to reset and rebuild readiness for
    future operations; and to transform to better meet the demands of the
    21st century.
        To continue our mission for the next 100 years, the Army Reserve
    depends on adequate essential resources in the fiscal year 2009 budget
    and beyond. The firm application of the individual and collective
    skills resident with Army Reserve Warrior Citizens is essential to the
    offense, defense, and stability operations of this persistent conflict.
    Operationalizing the Army Reserve meets the needs of the Army
    Transformation guidelines and strategies and gives taxpayers confidence
    we are using their resources wisely and efficiently. We agree with the
    January 31, 2008, Commission on the National Guard and Reserves
    characterization of the Nation's Reserve Forces; ``The Reserve
    Components are this nation's insurance policy against unexpected
    events, provide a daily connection between the military and their
    civilian communities, constitute a significant pool of pre-trained
    manpower, and are well-suited for a leading role in homeland response
    activities. Their value to the nation cannot be overstated.''
        We will continue to reflect the very best of our Nation by
    defeating the enemies of freedom and the proponents of terror, by
    defending our homeland, and by assisting our Nation to build a better
    future for coming generations. But we cannot fulfill our mission alone;
    we require continued support from Congress and the American people.
        The men and women of the U.S. Army Reserve epitomize what is best
    about America; it is an honor to serve with them. It is humbling to see
    the support our Families give to their Soldiers; for while it is the
    Soldier we recruit, it is their Families that we retain. It is also a
    privilege to work with the civilian employers who support our Soldiers
    in their communities; they continue to motivate us to find solutions
    for managing a shared workforce. Together, our Army Reserve Soldiers,
    their Families, and employers are the strength of the Nation.

                             Lieutenant General Jack C. Stultz,
                                              Chief, U.S. Army Reserve.
                            Command Sergeant Major Leon Caffie,
                             Command Sergeant Major, U.S. Army Reserve.
                               strategic context
    Warrior Citizens: An Integral Part of Today's Army
        The quality of our Force is undeniable. Army Reserve Soldiers are
    Warrior Citizens who contribute to their local communities as they
    pursue their civilian careers. In uniform, they also contribute to our
    national security when they train, prepare, watch, and listen for a
    call to arms. Over the last century, Warrior Citizens have repeatedly
    answered that call and have proven the value of citizens serving in the
    Army Reserve to achieve national goals. Today, tens of thousands of men
    and women are in the Army Reserve; when they mobilize, they leave their
    homes, their Families, and their jobs to serve our Nation. And, over
    the course of the coming years, thousands more Army Reserve Warrior
    Citizens will step forward to serve and sacrifice on behalf of their
    friends and neighbors and the strangers they call countrymen--the
    citizens of the United States.
        Our Warrior Citizens are volunteer members of the best trained,
    best led, and best equipped fighting force our Nation has ever fielded.
    The 190,796 Army Reserve Soldiers mobilized since September 11, 2001,
    demonstrate why Warrior Citizens are among those proud to be called
    Army Strong.
        The men and women of the Army Reserve hail from every corner of
    this Nation, ordinary Americans volunteering for extraordinary service.
    They are black (22 percent), white (60 percent), Hispanic (12 percent),
    and Asian and Pacific Islanders (4 percent). Seventy-seven percent are
    men, 23 percent are women. They are young (46 percent are 17-29 years
    old) and they are mature (46 percent are aged 30-49). They don the
    uniform as enlisted Soldiers (81 percent), officers (18 percent), and
    warrant officers (1 percent). Our Warrior Citizens are men and women
    committed to their Families, their communities, and their country. They
    are the strength of our Nation.
        Our Force includes Soldiers like Staff Sgt. Jason Fetty, a civilian
    pharmacy technician from Parkersburg, West Virginia. In the Army
    Reserve, he is a pharmacy specialist with the 339th Combat Support
    Hospital in Coraopolis, Pennsylvania. When he deployed to Afghanistan
    in April 2006, he voluntarily transferred from his medical unit to the
    364th Civil Affairs brigade to join a Joint Provincial Reconstruction
    Team.
        With just a week left on his one-year tour, Fetty encountered a man
    dressed in a hospital lab coat that forever changed his life. On
    February 20, 2007, at a ribbon-cutting ceremony to open the emergency
    room his unit constructed at the Khost City Hospital, Fetty noticed one
    of the doctors acting strangely. He said the doctor looked ``crazy in
    the eyes.'' After ten months in Khost, he knew a lot of the medical
    personnel, and he didn't recognize this man, so he confronted him and
    immediately perceived him as a threat. He was right. The man was a
    suicide bomber.
        Fetty knew he couldn't risk hitting an innocent bystander if he
    were to shoot and miss, so he maneuvered away from the crowd, hoping
    the suicide bomber would follow. He did. Two other U.S. Soldiers began
    firing warning shots at the man, still not realizing he was a suicide
    bomber. After firing a warning shot, Fetty shot the man in the legs. He
    fell, but didn't go down completely so Fetty himself raised his weapon
    again and struck him in the abdomen. When Fetty saw the man slowly put
    his hand under his lab coat, he knew this was an indicator something
    was about to happen. Fetty yelled for everyone to get out of the way
    and he started running. He didn't get far. When the bomb exploded,
    Fetty sustained shrapnel wounds to his face, back, thighs, ankle, and
    elbow. The other two U.S. Soldiers were also wounded, but no one in the
    large crowd gathered for the ribbon cutting ceremony died; no
    civilians, no dignitaries, no Soldiers. Fetty was awarded the Purple
    Heart as he recovered from his wounds at the Task Force medical
    treatment facility at Bagram Airfield. On October 12, 2007, he was also
    awarded the Silver Star in recognition of his heroic service under
    fire. He is the first Army Reserve Soldier to earn this distinction for
    service in Afghanistan. From Fetty's perspective, ``Anyone would have
    done what I did if they were put in the same situation.''
        We are also privileged to have Soldiers like Jennifer J. Johnson in
    our ranks. She was a nurse practitioner who thoroughly enjoyed her
    civilian career in medicine, skills she brought with her when she
    joined the Army Reserve in 1985. But she felt something was missing,
    that perhaps nursing was a bridge to an even greater calling. In 2003,
    she was ordained as a minister and moved from the nurse corps to the
    chaplain corps in the Army Reserve. Of the 393 chaplains serving in the
    Army Reserve, only 29 are female. Chaplain Johnson says there are many
    qualities of nursing that are comparable to the ministry. ``We guide,
    we direct, we nurture,'' she said.
        Chaplain Johnson mobilized for one year in July 2006. Twenty-one
    years after she first joined the Army Reserve, her professional and
    military careers came full circle when she deployed to Iraq in
    September of that year. As the chaplain for the military hospital in
    Tikrit, she provided pastoral care at the 46-bed facility. There she
    saw first-hand how holistic care--taking care of the emotional and
    spiritual well-being of a patient--helps physical healing. Chaplain
    Johnson always carried a Prayer Book for U.S. Forces with her--in the
    operating room, visiting patients, or leading a congregation in
    prayers. She also provided spiritual healing to the medical staff. Like
    many Soldiers, her military duties kept her away from her family for 15
    months. She missed her daughter's first prom, family weddings and
    funerals, and routine family life. But her sense of duty to country by
    serving in the Army Reserve and her responsibility as a person of faith
    kept her focused. When she returned from Iraq, she was hired as the
    chaplain of a large university hospital. Chaplain Jennifer J. Johnson
    is an example of the kind of strength our Soldiers bring to the
    Operational Force as well as to their civilian communities.
        College student Bethany Gunter wanted to challenge herself mentally
    and physically, so she joined the Army Reserve; the educational
    assistance would help defray college expenses. In her Little Rock,
    Arkansas, unit she not only found the challenge she sought; she also
    found a soul mate, Nicholas Horn. After taking a few college courses
    and working for several years in the plumbing business, he was also
    ready for a change. He dreamed of being a Soldier, and the thought of
    becoming a husband never entered his mind, until he met Beth. The two
    Soldiers married shortly before deploying together to Mosul, Iraq,
    where they served with the 43 1st Civil Affairs Battalion. There, Spc.
    Bethany Horn worked in supply, but was trained to drive a 17,000-pound
    up-armored Humvee and to serve as the swiveling turret gunner behind a
    belt-fed machine gun. Sgt. Nicholas Horn was the operations non-
    commissioned officer in charge. During his one-year deployment, he was
    awarded a Bronze Star for saving the life of a civilian injured in a
    mortar attack.
        Bethany said their joint deployment forced them to mature, ``We
    couldn't be kids anymore; our day-to-day objective was to survive and
    to try to make a difference in Iraq.'' Nicholas said the deployment
    reinforced to him the fact that marriage is a team effort, especially
    in a combat zone. ``We worked together 24 hours a day, seven days a
    week. We saw each other react when mortars hit and we grew to depend on
    each other, to stay alive as we build our lives together. She's the
    only battle buddy I'll ever need.'' They both believe the skills
    they've learned in the Army Reserve will help them be better leaders in
    their community as they interact with customers and classmates and
    improve their readiness and training with their unit in the Army
    Reserve.
        Our force also includes Soldiers like 1st Lt. Virgilio Villacorta.
    He's a senior scientist who works in algorithm development and image
    processing for defense applications. He earned his Ph.D. in health
    sciences and technology from MIT, where his research was on how the
    brain adapts to acoustic perturbations and resilient speech patterns.
    He joined the Army Reserve in October 2001 because he wanted to serve
    his country. He was commissioned in December 2004 and now serves with
    the 368th Military Intelligence Battalion. He attributes his work in
    military intelligence to providing him with a better understanding of
    the technology Military Intelligence units need in the field and how
    important the design of the technical equipment is to the Soldiers who
    depend on it. Villacorta, like many of our Warrior Citizens, came to
    the Army Reserve with an advanced degree.
        These Army Reserve Soldiers are typical of the patriotic men and
    women who have answered the Nation's call to serve. They are
    illustrative of why our Warrior Citizens are the strength of our
    Nation, are an integral part of today's U.S. Army, and deserve the best
    possible and most thorough training, resourcing, and support from
    Congress and the American people.
    The 21st Century: A Century of Leadership and Strength
        The Army Reserve has experienced significant change during our
    first century of service to the American people. Our military forces
    support the American people and are connected directly to American
    communities through Soldiers such as the Warrior Citizens who serve in
    the Army Reserve.
        As we look to the future, we know without a doubt we will continue
    to adapt to change, to transform to a more effective operational force,
    and to meet the needs of the Army. Increasingly, we recognize that the
    uncertain security environment of the future and the challenging fiscal
    responsibilities faced by our Nation require more cost-effective,
    flexible sources of manpower that can be efficiently increased in times
    of need and reduced in a way that economically preserves capability
    when requirements diminish. As the Commission on the National Guard and
    Reserves concluded, ``Fundamental reforms are needed to ensure the
    Reserve Components are feasible in the short-term while sustainable
    over the long-term.'' This will impact the pace of the Army Reserve's
    transformation and how our Force is resourced, manned, and trained.
        We have entered a dynamic era--an era of extraordinary challenges--
    an era marked by unprecedented technological and economic advances,
    expanded globalization, and a burgeoning world population. These
    advances have resulted in an increased demand on resources such as
    fresh water, food, and the elements that sustain economic enterprise.
    As the global community becomes more interconnected, an unstable
    natural environment and a growing world population will exacerbate the
    potential for conflict and increase the likelihood of humanitarian
    crises.
        Other contributing factors impacting international stability
    include the struggle for power involving economic and technological
    dominance, religious and cultural conformity, and the infrastructure to
    provide basic human necessities such as food, water, shelter,
    sanitation, medical care, and the economic means to sustain affected
    populations.
        The technological advances of the last century have contributed to
    an increase in the length and quality of life for many of the world's
    inhabitants. But technology has proven to be a double-edged sword.
    While it is used for many productive ends, it may also be leveraged for
    destructive purposes. Unstable governments and well-financed groups who
    seek to exploit weapons of mass destruction for diverse aims seriously
    threaten global peace and must be contained. State-on-state regional
    conflicts, failed states competing for internal and external resources,
    and global terrorism threaten world peace and stability.
        The challenges America faces are many, and the risks are great. We
    are in a position that is both envious and dubious. Global leadership
    demands global responsibility. The United States Army is one of the
    most far-reaching and capable forces available for the country to
    tackle global challenges of the 21st century. The United States Army
    Reserve is an integrated, operational component of the world's greatest
    Army--ready, willing, and able to face these challenges.
        The emerging trends of globalization, population growth, resource
    depletion, climate change and natural disasters, proliferation of
    weapons of mass destruction, and failed and failing states demonstrate
    a global environment of dynamic risk. These risks place high demands on
    our military. The core competencies that reside in the U.S. Army
    Reserve allow the Active Force to mitigate these risks to achieve
    national objectives.
        The Army Reserve is a valuable component of the Army because it is
    dynamic, flexible, and capable, as well as a significant provider of
    combat support and combat service support to the Total Force. The Army
    Reserve is well designed and well suited for operations in a global
    environment of instability. The Army Reserve possesses extensive
    capabilities to respond to nuclear, biological, and chemical weapons
    threats. Army Reserve Soldiers are uniquely suited, by way of the
    extensive civilian-acquired skills that complement military-acquired
    skills, to participate in missions to defeat threats to security, as
    well as stability and reconstruction operations. The Army Reserve also
    possesses unique capabilities and resources to address humanitarian
    contingencies at home or abroad and remains the Nation's first Title 10
    responder to provide support and assistance to civil authorities when a
    disaster or emergency occurs in the United States and its territories.
        The Army Reserve is postured to respond and execute, in real time,
    missions to support the national military strategy. We continue
    improving the Army Reserve's capability and efficiency. We are in the
    midst of restructuring and improving our business practices, reducing
    overhead, and fielding more deployable force structure to meet the wide
    array of missions ongoing or expected in the years ahead.
        The 21st century is proving to be a century in need of the
    capabilities of our Warrior Citizens. The strength of the Nation lies
    with the strength of her citizens to bear the burden, pay the price,
    and to commit and sacrifice for the greater good. Army Reserve Warrior
    Citizens are carrying forth that tradition into a second century of
    service and sacrifice. We are more fully integrating with the Active
    Army to leverage our mutual strengths as we effectively and
    successfully carry out every mission we are called upon to accomplish.
    2007: A Year of Success and Achievement
        The year 2007 was one of commitment, sacrifice, and change.
    Although the Army Reserve's fiscal year 2007 budget of $6.9 billion
    represented only 3.1 percent of the $221 billion total Army executed
    budget, the Army Reserve proved itself a cost-effective, successful
    force with a global presence. In fiscal year 2007 we achieved the
    following:
      --Mobilized more than 30,400 Warrior Citizens in support of Operation
            Enduring Freedom and Operation Iraqi Freedom. Currently, the
            Army Reserve has 27,143 Warrior Citizens mobilized.
      --Recruited 39,055 Soldiers into the Army Reserve.
      --Trained 16,479 Soldiers as recruiting assistants through the Army
            Reserve Recruiting Assistance Program.
      --Retained 19,727 Soldiers, which represents 119 percent of our
            retention goals for first-term and career Soldiers.
      --Launched the Army Reserve Warrior and Family Assistance Center to
            provide assistance to Soldiers and their Families, supporting
            more than 900 Warriors in Transition.
      --Conducted 165 Strong Bonds programs for 8,500 Soldiers and Family
            members to enhance Family and community relationships following
            deployments.
      --Initiated contact with business leaders to begin a dialogue on how
            the Army Reserve and employers can better share the skills of
            our Warrior Citizens.
      --Trained 350 Soldiers, Family members, and teens using Stephen R.
            Covey's ``7 Habits of Highly Effective Families'' method to
            provide tools for Family members to communicate and resolve
            problems effectively.
      --Graduated 33,605 Soldiers from basic, advanced, and skill-specific
            courses and offered 2,797 courses to our Soldiers. Our
            professional education requirements are essential to ensure
            that Army Reserve Soldiers remain vital to the world's premier
            military force.
      --Graduated 355 commanders and Command Sergeant Majors and more than
            500 company commanders from pre-command courses.
      --Inaugurated the first two Army Reserve Enrichment Camps attended by
            100 children of Army Reserve Soldiers.
      --Accelerated reorganization of the entire Army Reserve Training
            Structure and Training Commands to ensure synchronization with
            Army Reserve Training Initiatives.
      --Executed two major Warrior Exercises involving more than 8,000
            Soldiers at Fort Bliss, Texas, and Fort Hunter-Liggett,
            California. Conducted 16 functional exercises to sharpen
            Soldiers' technical skills.
      --Processed 5,957 Soldiers through the Rapid Fielding Equipment
            initiative.
      --Achieved initial entry rotor-wing training for 100 percent of the
            helicopter pilots residing in the Army Reserve at the U.S. Army
            Aviation Warfighting Center.
      --Moved over 6,700 pieces of unit equipment to regional training
            centers in support of the Army Reserve Training Strategy.
      --Aligned 78 percent of Army Reserve strength into operational and
            deployable forces.
      --Overhauled 4,139 pieces of equipment in the $144 million Depot
            Maintenance program.
      --Recapitalized 420 High-Mobility Multi-Purpose Wheeled Vehicles and
            61 Heavy Expanded-Mobility Tactical Trucks.
      --Fielded over 17,000 items of equipment to include: 12 Longbow
            Apache attack helicopters, Medium and Light Tactical Vehicles,
            Improved Ribbon Bridge, and communications equipment.
      --Increased Army Reserve Aviation force structure by two Blackhawk
            companies.
      --Moved to increase Army Reserve operating force by over 16,000
            deployable spaces by reducing and rebalancing force structure
            from training and support organizations to deployable modular
            operational units.
      --Activated and deployed the 316th Expeditionary Support Command, the
            primary logistics command supporting multinational forces in
            Iraq (from ``zero to Iraq'' in nine months).
      --Activated the 11th Theater Aviation Command at Fort Knox, Kentucky,
            and mobilized and deployed a command and control element with
            Aviation Task Force 49 in support of Operation Enduring
            Freedom.
      --Activated or converted 386 organizations to new modular structure.
      --Initiated the disestablishment of 12 Regional Readiness Commands
            and the establishment of four Regional Support Commands and 11
            Operational Commands to reduce overhead and generate more
            deployable capability.
      --Initiated 23 Base Realignment and Closure (BRAC) and Military
            Construction Army Reserve (MCAR) projects to build 14 Armed
            Forces Reserve Centers (AFRC), five Army Reserve Centers, and
            four training support projects.
      --Commissioned two Logistic Support Vessels, including the first
            watercraft in the U.S. military to be named after an African
            American, Capt. Robert Smalls, a hero from the American Civil
            War.
                       dynamic change, challenging times
        As the Army Reserve faces the threats of the 21st century security
    environment and responds to the Nation's call to serve, we continue to
    accelerate our transformation to a more effective, efficient, and
    relevant organization. We are carrying out dynamic institutional and
    operational changes in challenging times. We are not moving forward
    blindly, but we are adjusting to current conditions and responding to
    Army needs, as they develop. However, the current operational tempo is
    exacting a toll.
        Army Reserve Warrior Citizens are experiencing competing demands of
    civilian careers, Family, and repeated mobilization and deployments.
    The effect of these demands is most notable with junior noncommissioned
    officers and mid-grade commissioned officers. The Army Reserve faces a
    manning shortfall of experience and expertise at the ranks critical to
    the long-term health and vitality of the force. The Active Component is
    growing and the prospects of repeated long-term separations in rapid
    succession are not sitting well with Soldiers' Families and employers.
    The Army Reserve and the Nation must address these challenges to
    sustain our critical Warrior Citizen capability. This manning shortfall
    is the Army Reserve's most critical challenge.
        The Army's leadership has recognized the challenges impacting the
    force and taken steps to focus time, energy, talent, and resources to
    address these challenges. General George W. Casey, the Army Chief of
    Staff, established seven initiative working groups to tackle the Army's
    most critical challenges; the Army Reserve is engaged in each of these
    groups. The seven Army initiatives are:
      --Grow the Army;
      --Enhance support to Soldiers and Families;
      --Modernize the Force;
      --Transition the Reserve Component to an operational reserve;
      --Develop leaders;
      --Adapt institutional policies, programs, and procedures; and
      --Build strategic communications capability.
        The Army Reserve is addressing elements of all seven of these Army
    initiatives, but we are most focused on growth, enhancing support to
    Soldiers and Families, and transitioning to a more effective
    operational force. We direct our progress in each of these areas
    through the organizing construct of four imperatives: Sustain, prepare,
    reset, transform. To continue to succeed and meet the needs of the
    Nation, we must ensure we recruit and retain the best and brightest for
    our team, support our Soldiers, their Families, and their employers,
    and ensure they have the most efficient and effective organizations and
    processes to successfully accomplish their missions.
        We are organizing to address our personnel shortfall and improve
    the operational effectiveness of our formations. One of the
    cornerstones of our institutional transformation--the process that is
    driving much of our change in response to contemporary demands--is to
    organize Army Reserve units into a deployment cycle to maximize
    stability, predictability, and resource utilization. To increase the
    effectiveness of the Army Reserve and improve our contributions to the
    Active Component, we have aligned our units into synchronized training
    and force-sustainment packages supported by manning, equipping, and
    training processes. Taken together, we call this construct Army Force
    Generation (ARFORGEN), which mirrors and is directly aligned to the
    Army's ARFORGEN model.
        When fully implemented, this ARFORGEN process will improve our
    force by providing a predictable and rapid capability to synchronize
    our Soldiers and resources with national and global mission
    requirements. Based on a five-year training cycle, ARFORGEN involves a
    structured progression through three successive force pools: Reset/
    Train, Ready, and Available. By establishing these three distinct force
    pools, the Army Reserve increases unit readiness and ensures a cyclical
    progression of trained, ready, and cohesive units.
        Since 2004, we have aligned 78 percent of our Force into the
    ARFORGEN process. To fully implement the five-year training model, we
    need approximately three years of stabilized Army deployment
    requirements. We have therefore programmed our combat support and
    combat service support into packages of approximately 35,000 Soldiers
    annually in the various stages of ARFORGEN.
        Implementing ARFORGEN has proven that the Army Reserve must fully
    integrate with the development and fielding of Army logistics
    information and management systems to meet our requirements for
    maintaining pre-mobilization readiness. ARFORGEN is an effective tool
    for our force, allowing the Army Reserve to focus on current operations
    while enabling Soldiers, Families, and employers to anticipate future
    Army requirements as a fully operational force.

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                                    ARFORGEN
    Reset/Train
                ARFORGEN years one and two
        Activities during the first two years focus on obtaining or
    sustaining individual and squad training as well as refreshing unit
    leaders. Once these small team and section tasks are complete and
    leadership set, the unit will focus on subunit collective tasks or
    mission-specific tasks.
    Ready
                ARFORGEN years three and four
        After building on individual and team training, during years three
    and four, the focus shifts to sustaining those skills and training at
    higher collective levels in increasingly challenging environments. This
    phase is designed to reduce post-mobilization training time and to
    provide unit depth or strategic capability that can be surged to meet
    unexpected operational demands. Once units are alerted for deployment
    mission, training is reoriented to prepare for specific missions and
    the conditions the units will likely face. Activities during this phase
    include unit training to support leaders as they prepare for and
    conduct full spectrum operations, growing team capabilities, and
    enhancing individual, collective, and organizational learning.
    Available
                ARFORGEN year five
        During this year in the ARFORGEN cycle, Army Reserve units are
    available to mobilize and deploy, to execute specific programmed
    missions, or to stand ready to respond to unexpected events at home or
    abroad.

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    Critical Challenges to Operationalize the Army Reserve
        As the Army Reserve transforms to a more effective operational
    force, we continue to witness a change in how the American public views
    not only the Army Reserve, but also patriotic responsibilities to serve
    our Nation. Immediately after September 11th, Americans answered the
    call to serve. However, after more than six years of war, we recognize
    there is a compelling need to inspire a new generation to public
    service with the Army Reserve. Maintaining the Army Reserve as a world-
    class provider of support and stability capability also requires:
      --Timely and predictable funding through base and supplemental budget
            requests to fund Reserve Personnel, Army (RPA), Operation and
            Maintenance, Army Reserve (OMAR), and Military Construction,
            Army Reserve (MCAR).
      --Extend recruiting and retention incentives to assure the Army
            Reserve enlists and retains the best and brightest to man the
            force.
      --Extend incentive pay for health care professionals and other
            specialized occupations to ensure we retain the professional
            skills we need.
      --Support Army Reserve programmed increases for full-time personnel.
      --Improved employer partnership initiatives to ensure employers do
            not bear an undue burden for employing Army Reserve Soldiers.
      --Fund Army Reserve Logistics Automation Operations and Maintenance
            of new equipment training requirements to support the
            integration of Army Reserve requirements into Army logistics
            information technology systems.
      --Support Army Reserve request for funding for base operation support
            and facilities, sustainment, restoration, and maintenance of
            Army Reserve facilities.
      --Continued funding of depot maintenance to overhaul older generation
            equipment.
      --Continued support to implement the ARFORGEN process, enabling the
            Army Reserve to completely transform to an operational force.
      --Maintain momentum to achieve Base Realignment and Closure (BRAC)
            mandates with modern facilities.
      --Support the Army Reserve program for secure communication systems
            to ensure integrated capabilities--tactical to strategic--that
            are plug-and-play, modular, and scalable to achieve jointness
            and modularity.
      --Fund Army Reserve training program request to sustain four regional
            training centers and combat support training centers.
                 sustain our soldiers, families, and employers
        We live in an era in which Army Reserve Soldiers find themselves
    serving in a persistent conflict. This is the first time in history
    that our Warrior Citizens, who are patriotic, professional, and
    integral to our All-Volunteer Force, have been engaged in such a long
    conflict. No longer can Army Reserve Soldiers plan on one weekend a
    month and two weeks in the summer to fulfill their annual service/
    training requirement. The impact of our transformation to an
    operational force, combined with a state of continuous mobilization,
    has put a strain not only on our force, but also the Families and
    employers whose support is vital to our Warrior Citizens.
        Today, the Army depends on the Army Reserve to sustain the tempo of
    deployments demanded by this persistent conflict. For the Army Reserve
    to remain a significant asset to the Army, our Nation, and the
    communities where our Soldiers live and work, it is necessary to take
    care of our most valuable resource--our people. To sustain our force,
    we must do more to ensure our Soldiers, their Families, and our
    Soldier's civilian employers are supported through solid programs and
    supportive communities.
        We care about the physical, spiritual, and mental health of our
    Soldiers and their Families. Sustaining the Army Reserve begins with
    recruiting high-quality men and women and then retaining them and their
    Families, as well as partnering with their civilian employers
    throughout their military careers. Our Soldiers cannot be sharp on the
    battlefield if their focus is the impact their military service is
    having on their Families and employers. We must take care of our
    Families and we must have a relationship with the employers of our
    Warrior Citizens. Without support from Families and employers, we
    cannot sustain our force.
        Sustaining the Army Reserve also reminds us of our moral obligation
    to take care of our Soldiers who are wounded, injured, or ill, as well
    as the Families of our Fallen Soldiers.
    Recruit
        Our Warrior Citizens must be physically strong, mentally aware,
    fully trained and equipped, and ready to deploy when the Nation calls.
    In fiscal year 2007, the Army Reserve surpassed its overall recruiting
    goal. Although the Army Reserve is solely responsible for meeting our
    end strength objective, the Army Reserve recruiting mission is shared;
    thus, we do not have direct control of a recruiting budget that affords
    us the opportunity to market and advertise to specific Reserve
    Component demographics. As a result, we rely heavily on targeted
    initiatives such as Army Reserve-specific advertising and the Army
    Reserve Recruiting Assistance Program.
                Army Reserve Recruiting Assistance Program
        AR-RAP is a community-based recruiting program launched in July
    2007. The program leverages the personal contacts our Soldiers have
    within their communities. Essentially, every Army Reserve Soldier is
    now a recruiter who can earn up to $2,000 for each recruit that
    contracts and ships to Basic Combat Training, Basic Officer Leader
    Course, or for each Prior Service Soldier that completes 120 days of
    unit affiliation and attends a Battle Assembly.
    Retain
        In an environment of scarce human resources, retaining our Warrior
    Citizens is a top priority. During fiscal year 2007, reenlistment of
    first-term Army Reserve Soldiers reached 155.2 percent of our goal. Our
    fiscal year 2007 goal was to reenlist 5,103 first-term Army Reserve
    Soldiers. We surpassed that number and actually reenlisted 7,887 first-
    term Army Reserve Soldiers. We also surpassed our career reenlistment
    goals; we achieved 103.2 percent of that goal. However, our high
    operational tempo has resulted in a decline in our end strength. The
    primary cause of the decline is the number of Soldiers who transfer out
    of the Army Reserve into the Army and the Army National Guard.
        In fiscal year 2007, 7,107 Warrior Citizens transferred to the
    Active Army and 2,375 transferred to the National Guard. Though still
    good for the Army, to ensure Army Reserve readiness and sustain
    personnel strength of units scheduled for upcoming deployment, the Army
    Reserve instituted a policy that Soldiers in units transitioning into
    the fourth year of ARFORGEN are ineligible to voluntarily enlist or to
    be appointed in the Active Army, Army National Guard, or any other
    military service.
        The Army Reserve offers a variety of incentives through our
    selected Reserve Incentive Program to retain Soldiers who endure the
    stress and hardship of multiple mobilizations and deployments.
    Incentive packages are targeted to specific audiences such as Soldiers
    with prior service, those who complete 20 years of service, officer and
    warrant officer accession and affiliation bonuses, enlisted affiliation
    bonuses, and Army Civilian-acquired skills bonus programs. Incentives
    can range from $7,500 up to $20,000. An additional Army Reserve
    retention bonus specifically addresses mid-career officer and non-
    commissioned officer shortages. Based on critical skill needs of our
    Soldiers, the Critical Skills Retention Bonus-Army Reserve can pay up
    to $50,000 per Soldier for a 3-year service obligation. This incentive
    is paid out to Captains, Chief Warrant Officers Three, Staff Sergeants,
    and Sergeants First Class who possess a critical military occupation
    specialty. This incentive authority was part of a recent National
    Defense Authorization Act Fiscal Year 2008 change; the Army Reserve is
    awaiting approval from the Office of the Secretary of Defense for
    implementation of enlisted and warrant officer bonuses.
    Improve Quality of Life
        The most important element in sustaining the Army Reserve is the
    quality of life we provide our Warrior Citizens and their Families,
    impacted by their Soldiers' commitment to serve. We work aggressively
    to support our Soldiers and their Families with services that address
    health care, family programs, education, and employment. Support from
    our communities is vital to our Army Reserve Families, who do not
    traditionally reside on or near military installations. These Families
    often have more diverse needs than those of Active Component Soldiers.
    It is therefore essential that we continue to improve coordination of
    state and federal agencies, nonprofit organizations, and the military
    community to ensure our Warrior Citizen Families have integrated,
    accessible support available to them.
                Seamless Health Care
        Few programs reflect care for Soldiers more directly than health
    care plans; yet current medical management strategies and structures do
    not adequately support Army Reserve Soldiers and their Families, who,
    unlike the Active Component, transition back and forth between their
    civilian careers and their military careers. The Army Reserve believes
    that seamless health care coverage contributes to the military
    readiness of our Soldiers by preventing our Soldiers from being
    ``whipsawed'' between military and civilian health care service
    providers. Additionally, fully supporting Army Reserve Soldiers who
    live in remote locations continues to be a top priority. The Army
    Reserve is working with the DOD to determine how best to solicit health
    care providers to support health care coverage for our Soldiers and
    their Families in communities where TRICARE is unavailable.
      --Restructured TRICARE Reserve Select.--As of October 1, 2007,
            Selected Reserve (SELRES) Soldiers became eligible for TRICARE
            health coverage. TRS is available to Soldiers and their
            Families regardless of any active duty time served. Benefits of
            the program include: worldwide availability to most Select
            Reserve members and their Family members; freedom to manage
            health care with no assigned primary care manager; no referrals
            required; access to care in a military treatment facility on a
            space-available basis; and comprehensive health care coverage
            including a TRICARE prescription drug benefit.
                Strong Bonds Program
        The Strong Bonds program offers Soldier/Spouse and single Soldier
    Family reintegration events after deployment. This training helps
    Families of deployed and deploying Soldiers deal with the stress that
    often accompanies a Soldier's deployment. It is a proven,
    multicomponent program under the supervision of the Office of the Chief
    of Chaplains. As part of this program, the Army Reserve conducted 165
    Soldier retreats, serving more than 8,500 Soldiers and Families in
    fiscal year 2007. The Army Reserve anticipates conducting a comparable
    number of programs and outreach in fiscal year 2008.
                Army Reserve Warrior and Family Assistance Center
        The Army Reserve Warrior and Family Assistance Center was
    established in October 2007 to ensure that Warrior Citizens receive
    appropriate support under the Army Medical Action Plan. This center
    provides a sponsor to each Army Reserve Soldier and Family currently
    assigned to a Warrior Transition Unit, Community-Based Health Care
    Organization, or Veterans Affairs Poly-Trauma Center. The center also
    manages a toll-free hotline (866-436-6290) and Web site (www.arfp.org/
    wfac) to provide assistance to Army Reserve Soldiers, Families, and
    retirees on a variety of issues, such as medical, financial,
    administrative, and pastoral concerns.
                Family Programs and Services
        Our commitment to family readiness is further demonstrated by Army
    Reserve Family Programs (ARFP) initiatives that continue to develop and
    evolve to meet the unique needs of our Soldiers and their Families. The
    Army Reserve is hiring Employer Support Program Managers who will be
    assigned to 27 major subordinate commands throughout our Force to meet
    Army Reserve Soldier and Family needs on a full-time basis. Soldiers
    and their Families can log on to www.arfp.org to learn about other
    Family program initiatives including:
      --Virtual Family Readiness Groups where Army Reserve Families can
            utilize the information and resources provided by the Army's
            Integrated Family Support Network. Funding and staffing have
            increased, allowing more face-to-face, as well as telephonic
            and virtual, contact with Families.
      --Virtual Installations.--The Army Reserve will conduct a pilot test
            of our Virtual Installation in May 2008. Virtual Installations
            will consolidate our services and allow Families to stay in
            touch, stay informed, and stay together. The Virtual
            Installation represents a conglomerate of Families, volunteers,
            associations, military programs, and civic organizations such
            as the American Legion and Veterans of Foreign Wars. Services
            that will be available online include registering for ID cards,
            enrollment in TRICARE, and the ability to get counseling,
            support, financial assistance, job placement, or to take
            classes.
      --Outreach.--Army Reserve staffers are able to share information,
            conduct education and training, and provide appropriate crisis
            response, conflict resolution, or referral to an appropriate
            helping agency. The first issue of ``Family Strong,'' a full-
            color quarterly publication providing Family readiness
            information, was distributed to 22,000 households of deployed
            Army Reserve Soldiers in the fall of 2007. Future issues will
            be distributed to the entire Army Reserve population.
      --Welcome Home Warrior Citizen Award Program.--This award was created
            to publicly recognize the sacrifices that Army Reserve Soldiers
            and their Families have made to the Global War on Terror. Since
            the program's inception in fiscal year 2004, 124,887 awards
            have been delivered to Soldiers, their Families, and their
            employers.
      --Child and Youth Services.--Child and Youth Services ensures that
            children of our Warrior Citizens understand how their family
            dynamics may change when a parent is mobilized. Programs and
            initiatives are designed to meet the needs of children and
            young adults and include child care, leadership and development
            conferences, and Army Reserve Enrichment Camps. These camps
            provide youth an opportunity to learn new skills, develop
            relationships, and learn more about the Army Reserve. The Army
            Reserve will host five Enrichment Camps in 2008.
      --Operation Purple Camps are free one-week residential camping
            programs funded by the National Military Family Association.
            The camps bring together children who have a parent or guardian
            experiencing some stage of a deployment. During the summer of
            2007, 566 children of Army Reserve Soldiers attended these
            camps; four camps were hosted by Children and Youth Services in
            partnership with Boys & Girls Clubs of America and 4-H. The
            Army Reserve will host eight Operation Purple Camps (in
            partnership with national organizations dedicated to serving
            youth) in 2008.
      --Civilian Education for Soldiers.--Education benefits clearly
            enhance the development of Army Reserve Soldiers, as well as
            our ability to retain Soldiers. During fiscal year 2007, 28,115
            Army Reserve Soldiers used tuition assistance and 1,265
            participants earned degrees.
    Warrior Care and Transition
        The Army Reserve will never forget its moral obligation to our
    injured and wounded Soldiers and their Families. At the core of our
    service, Army Reserve Warrior Citizens are Army Strong. It is the duty
    of all Soldiers to care for their fellow Soldiers in time of battle and
    in time of healing; our actions exemplify the strength of our Force as
    it supports the strength of the Nation. It is also the duty of all
    Soldiers who are wounded, injured, or ill to focus their energies on
    healing as intently as they focused on their mission in theater.
        The Warriors in Transition Program assists disabled Soldiers who
    suffered severe injuries on or after September 11, 2001, and who have
    been awarded (or are likely to receive) an Army disability rating of at
    least 30 percent. Assistance is provided from initial casualty
    notification through the Soldier's assimilation into civilian community
    services (for up to five years after medical retirement).
                Warrior Transition Units
        Injured Army Reserve Soldiers who are on active duty healing are
    assigned to WTUs. The Army Reserve has approximately 1,400 Soldiers in
    these units. We made available 380 Soldiers to assist the full-time WTU
    staff in manning these units and providing continuous, dedicated
    support to these Warriors in Transition. All Soldiers assigned to WTUs
    are given this mission:
        ``I am a Warrior in Transition. My job is to heal as I transition
    back to duty or continue serving the Nation as a Veteran in my
    community. This is not a status, but a mission. I will succeed in this
    mission because I am a warrior and I am army strong.''
    Support to Families of Our Fallen Soldiers
        In support of Operation Enduring Freedom and Operation Iraqi
    Freedom, 156 Warrior Citizens have made the ultimate sacrifice and
    given their lives in service to their Nation, each with a Family back
    home. We recognize the distinguished service, selfless acts of bravery
    and leadership, and the ultimate sacrifice these Soldiers and their
    Families have made for the cause of freedom.
        As part of our commitment to the Families of our fallen comrades,
    the Army Reserve conducts a memorial service to honor their loved one's
    sacrifice, offers chaplain support, and offers ongoing support to help
    the Family through its period of mourning and beyond, with follow-on
    counseling, support, and services. The Warrior Citizens of the United
    States Army Reserve will never leave a fallen comrade. We will also
    never forget Sergeant Ahmed Kousay Altaie of Ann Arbor, Michigan, who
    was assigned to the Provincial Reconstruction Team Baghdad. He was
    declared missing-captured on December 11, 2006.
    Employer Partnerships
        The Army Reserve Employer Relations Program fosters better
    understanding between commands, Soldiers, and Soldiers' civilian
    employers. Building enduring partnerships with the civilian employer
    community is vital to Soldier readiness and positively impacts
    retention. It would be impossible for the Army Reserve to sustain our
    force without the support of the nearly 44,000 businesses that employ
    our Warrior Citizens in communities around the country. Employers who
    hire Army Reserve Soldiers earn a great return on their investment:
    they benefit from the values, experiences, and leadership skills that
    Warrior Citizens bring to the workplace. A solid partnership requires
    efforts and sacrifices from all parties through an open and candid
    dialogue based on a clear appreciation of each party's interests and
    requirements.
        In fiscal year 2007, the Army Reserve focused its efforts on
    alleviating the burden on corporate America when their employees, our
    Warrior Citizens, mobilize and deploy. We are working to enhance
    employer support through a systemic blending of grass-roots objectives:
    mitigation, mediation, employer outreach and awareness, and Soldier-
    employer relations. Throughout fiscal year 2008 we will continue to
    develop and improve employer relations with the following initiatives:
      --Hiring Employer Support Program Managers for assignment to 27 major
            subordinate commands throughout the Army Reserve. These
            managers will participate with state-level Committees for
            Employer Support of the Guard and Reserve to proactively engage
            with employers on behalf of the Army Reserve's Warrior
            Citizens. These managers will provide commanders with the
            expertise and support required to carry out the employer
            relations initiatives established by the leadership of the Army
            Reserve.
      --``Partnering with Industry.'' The Army Reserve is experiencing
            increased challenges and demands in providing personnel to meet
            mission requirements abroad and in support of domestic civil
            authorities. In a tight labor market, employers such as local
            law enforcement, interstate trucking companies, and medical
            care facilities are competing for the same qualified pool of
            talent as the Army Reserve. We continue to look for
            opportunities to build enduring partnerships with industry and
            to focus our efforts on ``Optimizing a Shared Workforce'' with
            and between the Army Reserve and civilian employers. Army
            Reserve Aviation, for example, has found success by partnering
            local medical facilities with new air ambulance (MEDEVAC)
            companies and providing mutual benefits through the
            credentialing of common but critical skills sets in a shared
            labor pool.
      --Establishing the Employer Outreach General Officer Steering
            Committee to ensure Army Reserve Soldiers remain competitive in
            both their military and civilian careers. The committee
            consists of general officers who engage with the business
            community to foster relationships and exchange ideas and
            methods to support a strong Army Reserve.
      --An initiative currently being reviewed is the creation of a virtual
            ``job bank'' for Soldiers. This job bank would create a direct
            and focused link between employers and Soldiers in targeted
            career fields and specialties across a wide spectrum of
            positions.
        To sustain our Warrior Citizens, their Families, and their
    employers throughout fiscal year 2008 and beyond, the Army Reserve will
    continue to identify incentives, initiatives, and legislative changes
    to increase recruiting and retention and minimize attrition as we
    transform to a more effective operational force. We cannot realize
    long-term success as a force if we cannot create a stimulating
    environment that fosters growth and personal satisfaction. We must
    continue to maintain and improve the quality of life for our Soldiers,
    Families, and employers. This requires sustained and predictable
    funding to meet our manning objectives. Our focus on the imperative of
    Sustain will help bring the Army Reserve into balance and will support
    our full transformation to an effective, capable, sustainable, and
    enduring operational force.
               prepare soldiers for success in current operations
        The prepare imperative is defined as the readying of Soldiers,
    units, and equipment to succeed in the current operational environments
    of Iraq and Afghanistan and the 18 other countries where Army Reserve
    Soldiers serve. Our military success in the Global War on Terror is
    dependent on our ability to prepare and equip Army Reserve Soldiers as
    full cohesive units for current and future operations. Our Warrior
    Citizens serve the Nation as an operational force for which they were
    neither designed nor resourced; as a result, our primary focus is on
    the demands of current operations. We consume readiness as fast as we
    build it.
        Our mission is enduring: to provide necessary forces and
    capabilities to the Combatant Commanders in support of national
    security and defense strategies. Growing and transforming the force
    during an era of persistent conflict is driving the need for increased
    resources to train Soldiers and units; we risk failure if faced with a
    rate of change that exceeds our capability to respond.
        As outlined earlier in this Posture Statement, Army Reserve
    Soldiers are organized into a five-year cyclical manning, equipping,
    and training process--ARFORGEN--to increase the effectiveness of the
    Army Reserve and to improve our contributions to the Army.
    Train Soldiers and Units
        We have updated the Army Reserve training strategy over the past
    year. The update was necessary to accommodate the continued maturation
    of Army ARFORGEN plans and concepts; to implement the Army Campaign
    Plan; to execute DOD mobilization policies; and to prepare for the
    dynamic environment Soldiers and units will face. To accomplish this,
    we revised the following:
      --Command Relationships.--The U.S. Army Reserve Command (USARC)
            continues to grow into its new role as a direct reporting unit
            to Headquarters, Department of the Army (previously USARC was a
            major subordinate command of U.S. Forces Command). This has
            resulted in additional responsibility and more direct
            accountability to Army senior leadership for all matters
            attendant with providing, maintaining, training, equipping, and
            the readiness of Army Reserve forces.
      --Post-mobilization Training Time.--During the first quarter of
            fiscal year 2007, the Secretary of Defense announced a policy
            to limit involuntary mobilization of Reserve Component members
            to a maximum of one year, inclusive of post-mobilization
            training. The goal is to provide predictability to Reserve
            Component Soldiers, their Families, and their employers so they
            can better prepare for recurring mobilizations. This
            necessitated a streamlining of pre- and post-mobilization
            training to increase time in theater conducting combat and
            support operations. Thus far, the Army has supported our
            request for additional pre-mobilization training time to
            perform theater-specified, required training--17 days in the
            fourth year of ARFORGEN. Training performed to standard during
            pre-mobilization will not be repeated at the mobilization
            station.
      --Army Reserve Generating Force Transformation.--Fiscal year 2007 was
            a year for dramatic and fundamental change for training
            organization, certification, and support to the Army Campaign
            Plan. The Army Reserve became the certifying official for all
            Army Reserve pre-mobilization training. Upon mobilization, the
            Army continues to validate deployment readiness. Additionally,
            six Institutional Training Divisions were reorganized into a
            three-division structure consisting of initial entry training,
            the Army school system, and battle command staff training.
            These changes to our generation force resulted in reducing non-
            deployable headquarters structure, yet we retained essential
            training capabilities.
      --Regional Training Centers.--The Army Reserve began to field the
            first of four RTCs where units can train Soldiers and leaders
            on tasks that are too difficult to execute at Army Reserve
            Centers. On November 1, 2007, Fort Hunter-Liggett, California,
            was established as the first of these centers. Training began
            later that month with more than 100 Army Reserve units
            scheduled to attend pre-deployment training in 2008. Major
            training conducted at these centers includes weapons
            qualifications, convoy operations, and live fire. Three
            additional centers will be established in 2008: Fort Dix, New
            Jersey, Fort McCoy, Wisconsin, and a location to be determined
            in the Southeast. These centers are crucial enablers to reduce
            post-mobilization training time, improve pre-mobilization
            training, and enhance readiness of Army Reserve forces.
    Collective Training
        In 2007, the Army Reserve continued to improve pre-mobilization
    collective training, most visibly through the execution of two Warrior
    Exercises and the continued refinement of functional exercises. Warrior
    Exercises are ARFORGEN year-three events, which focus on collective
    war-fighting skills in eight-day, continuous-operation, field-training
    exercises that replicate the process of mobilization, deployment, and
    employment in theater. In fiscal year 2007, more than 8,000 Army
    Reserve Soldiers participated in Desert Warrior at Fort Bliss, Texas,
    and Pacific Warrior at Fort Hunter-Liggett, California.
        We also conducted 16 functional exercises to sharpen Soldiers'
    technical skills in a tactical environment. Functional exercises are
    ARFORGEN year-two events, which feature branch specific training in a
    field environment at the small team level. For instance, the
    Quartermaster Liquid Logistics Exercise is the prime venue to train
    Army Reserve petroleum, oil and lubricant, and water units. The
    exercise replicates theater-level petroleum and water operations to
    include storage, distribution, and production.
        Collective medical training at Fort McCoy, Wisconsin, Camp Parks,
    California, and Fort Gordon, Georgia, provide Soldiers with hands-on
    training on the latest theater-specific equipment.
        Throughout fiscal year 2007, we continued to support a train alert-
    deploy model. We realized that the Army's current installation
    inventory was not capable of meeting demand for training to standard
    Combat Support and Combat Service Support units. Additionally, the
    Army's Combat Training Center community could not sufficiently meet the
    Army Reserve training strategy requirement that all deploying units
    receive a ``Combat Training Center-like'' experience, nor could it meet
    the new mandate to complete many post-mobilization training
    requirements during the pre-mobilization period.
        As a result, in addition to the Regional Training Centers, the Army
    Reserve is developing concepts for Combat Support Training Centers.
        The Combat Support Training Center program will provide the Army
    and Army Reserve with the ability to design training scenarios,
    simulate theater operations in a contemporary environment, and provide
    exercise exit evaluation for the Army Reserve's performance of Combat
    Support and Combat Service Support missions across the full spectrum of
    operating environments.
        The Ready Response Reserve Units initiative is a pilot program
    designed to create units capable of meeting short-notice requirements
    from Combatant Commanders. Test units are manned with volunteer
    Soldiers who are willing to serve on ``part-time active duty''--more
    than 39 days but less than 365 days per year. This is a key initiative
    to fill gaps in force-structure capabilities. Once this pilot program
    validates its proof of principle, it can be expanded and synchronized
    with ARFORGEN to fill gaps in high-demand, low-density units. At
    present, the current pilot directed by the Assistant Secretary of the
    Army for Manpower and Reserve Affairs has identified three categories
    of units to test. These include: Early Entry Operations, Known Surge
    Operations, and Sustainment Operations, all scheduled to begin October
    1, 2008.
    Develop Agile and Adaptive Leaders
        Army Reserve senior leaders serve in Army Reserve Operational and
    Functional formations and at all levels of Army Commands throughout the
    force. They bring a unique blend of civilian-acquired skills and honed
    warrior-leader attributes to the fight.
        The Army Reserve continues to explore avenues to increase the
    primary war-fighting skills through direct management, development, and
    utilization of our senior leaders from the Active Guard and Reserve
    (AGR), Troop Program Unit (TPU), and Individual Mobilization Augmentee
    (IMA) ranks.
      --The Senior Leader Training Program.--The Senior Leader Training
            Program develops the intellectual and strategic-thinking skills
            senior leaders need to implement, manage, and lead change in
            the Army Reserve. Topics covered include: strategic leadership
            skills, ethical decision making, critical thinking, and Army
            Reserve transformation. The program focuses on general officer
            and colonel-level leaders with seminars that assist subordinate
            commanders in working through transformation and organizational
            change.
      --Pre-Command Courses.--The Army Reserve upgraded brigade and
            battalion pre-command courses to enhance training to prepare
            field grade commanders and command sergeant majors to lead Army
            Reserve Soldiers.
    Equipping Soldiers
        The Army Reserve is committed to providing our Warrior Citizens
    with the best, most technologically advanced equipment available when
    they train and deploy. We are implementing innovative initiatives and
    programs to support the Army Reserve Training Strategy to concentrate
    equipment and sustainment capabilities at regional training sites.
        During fiscal year 2007, the Army Reserve was able to mobilize all
    of its sourced units and elements while meeting pre-mobilization
    training objectives. The existence of theater-provided equipment
    relieved some pressure on the Army Reserve to find Modular Force-
    compatible equipment for our mobilizing units. However, providing the
    same equipment for pre-mobilization training has forced the Army
    Reserve to expend limited resources to move Modular Force-compatible
    equipment between units and training locations. Over 6,700 items were
    shipped from unit-home stations and equipment-demobilization sites to
    pre-mobilization training sites during fiscal year 2007. We anticipate
    approximately 7,000 pieces of equipment to be shipped to pre-
    mobilization sites in fiscal year 2008.
        The Army Reserve has continued to maintain 90 percent or better
    availability of its limited inventory for deployment and training
    through extensive use of overtime and contracting. Much of this success
    can be attributed to the availability of supplemental funds to contract
    for support to offset the shortfall in facilities and manpower and to
    sustain logistics operations in support of the training and
    mobilization of ``next-deployers.''
        The continuing shift of pre-mobilization training objectives under
    the ARFORGEN process not only continues to add pressure to our aging
    and limited equipment inventory for training, it could impact our
    response during a domestic emergency or a second foreign or domestic
    contingency.
        Currently programmed funding for equipment procurement will
    alleviate this concern, but the equipment procured will not be
    completely delivered until fiscal year 2016. At that time, our
    equipment on hand against unit requirements will increase from the
    current 68 percent to approximately 85 percent. The programmed funding,
    however, will only cover current shortages in Modular Force equipment.
        Other critical factors in maintaining the readiness of our
    equipment to support pre-mobilization training and deployment are the
    national level sustainment programs, such as Recapitalization and Depot
    Maintenance. The Recapitalization program affected only two major Army
    Reserve systems, the High Mobility Multi-Purpose Vehicle and the Heavy
    Expanded Mobility Tactical Truck. The Depot Maintenance program,
    however, provides the opportunity to extend the service life, reduce
    life-cycle costs, and maintain safe operation of older items required
    to substitute for Modular Force equipment due to equipment shortages in
    the Army Reserve.
    Homeland Defense and Support to Civil Authorities
        As the first Title 10 responder to support civil authorities during
    a domestic emergency, the Army Reserve is in the best position to
    respond to an attack that occurs in the United States. Our personnel
    and equipment are located in 1,200 communities across the Nation. As
    such, the Army Reserve is an important element of the current DOD
    ``Lead, Support, Enable'' Strategy for Homeland Defense and Civil
    Support. U.S. military forces organize, train, and equip to operate in
    contaminated environments, as well as manage the consequences of
    chemical, biological, radiological, or nuclear explosion incidents on a
    level unmatched by any other single domestic agency or international
    partner.
        The Chemical, Biological, and Radiological Nuclear Explosion
    Consequence Management Response Force consists of a rotational pool of
    Active and Reserve units from each of the services. When assigned to
    this force rotation, these units are kept on short notice to conduct a
    secondary mission of domestic consequence management should the need
    arise. Forces for direct response to the effects of an incident deploy
    when directed by the President or Secretary of Defense.
        The Army Reserve is uniquely positioned to support the Army and
    protect our homeland with experience, knowledge, capability, and
    competency. During this persistent conflict, the Army Reserve has the
    capabilities to keep watch at home and to respond to domestic
    emergencies. The imperative of Prepare will help bring the Army Reserve
    back into balance by ensuring our Warrior Citizens are prepared to
    succeed in current and future operational environments.
         reset our equipment to restore readiness and depth for future
                                   operations
        To succeed in current and future operations, the Army Reserve must
    take deliberate steps to ensure that our force is reset as a result of
    repeated deployments, and that our Families and employers are
    revitalized between their Soldiers' deployments so they too can sustain
    the continuous state of mobilization that their Warrior Citizens now
    experience. The Reset imperative now focuses on our equipment with the
    goal of undoing the accumulated effects of repeated equipment use by
    repairing, replacing, and recapitalizing our equipment to rebalance the
    Force.
        In response to the ARFORGEN process, the Army Reserve is building
    pools of equipment to support the mobilization of Army Reserve units in
    year five (Available) at strategic deployment sites, where the
    equipment is maintained in controlled humidity storage. If no Army
    Reserve units are mobilized for a contingency, foreign or domestic, the
    equipment will remain ready for the next cycle. The equipment in the
    hands of our units will remain with these units, be inducted into
    national sustainment programs, or be redistributed to meet the needs of
    the Army Reserve units as they enter the Reset/Train phase (year one).
        The Army Reserve does not budget for unplanned requirements.
    Therefore, should any Army Reserve units be mobilized, additional funds
    will be required to reset the equipment assigned to the mobilized units
    when they demobilize. These funds will prevent an adverse impact on the
    Army Reserve's ability to sustain the ARFORGEN process.
        A critical enabler for the Army Reserve during Reset is an array of
    standard Army management information systems, such as the Army Reset
    Management Tool and supplementary logistics information and management
    systems developed and fielded by the Army Reserve.
    Repair and Replace Equipment
        Currently, logistics operations and support for the Reset Program
    is managed and executed by the Army Materiel Command and the Army
    Installation Management Command. The fiscal year 2007 supplemental
    budget fully funded the reset of Army Reserve equipment redeployed from
    Operation Enduring Freedom and Operation Iraqi Freedom. In fiscal year
    2007, the Army Reserve significantly reduced its logistics reset
    backlog. We recovered, repaired, and serviced all redeployed equipment
    not inducted into national level maintenance by the Reset program. With
    the shortage of equipment in the Army Reserve, this recovered equipment
    was immediately transferred from redeployed units to ``next deployers''
    in order to sustain pre-mobilization and pre-deployment training.
        In fiscal year 2007, equipment losses incurred by the Army Reserve
    during mobilization and deployment were identified to the Army for
    integration into procurement and redistribution planning. Equipment is
    programmed for replacement over the next five years. The Reset
    imperative will contribute to restoring balance to the Army Reserve by
    reconstituting our equipment to match the operational tempo of this
    persistent conflict.
       transform the army reserve to meet the demands of the 21st century
        Demand for the authorized 205,000 Army Reserve Soldiers continues
    to verify the value of their contributions to the Total Force. Our
    transformation to a more effective, integral operational force allows
    us to meet today's demands and to position the Force for future
    deployments and contingency operations and commitments at home and
    abroad. Army Reserve Soldiers, Families, and employers continue to be
    an integral part of this transformation as we form and confirm bonds
    that support changes in the way we train, equip, resource, and mobilize
    our Force. The men and women of the Army Reserve are the centerpiece of
    our transformation. They are the strength of the Army Reserve force and
    the Nation--as both Soldiers and Citizens.
        On January 31, 2008, after releasing two interim reports, the
    Commission on the National Guard and Reserves submitted its final
    report to Congress. In it, the Commission concluded, ``The reliance (on
    the Reserve Components) should grow, even after the demands for forces
    associated with current operations are reduced.'' The report noted
    that, ``Their service in the operational force will be required in
    peacetime, and they will continue to provide a cost-effective means of
    ensuring that strategic requirements to meet a large wartime threat are
    also available. . . . Employing the Reserves in this fashion has proven
    necessary and effective and they have been relied on in every major
    military operation since Operation Desert Storm, yet the structural
    foundations of Reserve Component organization have been changed little
    to facilitate this employment.''
        Fully integrating with the Active Component and effectively
    operationalizing the Army Reserve are fundamental to the Transform
    imperative. The implementation of this imperative will return balance
    to the Army Reserve as we seek to grow the Army, modernize, undergo
    organizational and institutional change, and improve communications.
    Grow the Army
        As the Army Reserve continues to shape our force in preparation to
    support an era of persistent conflict, the challenge continues to be
    recruiting enough Soldiers to man units and equip new units with modern
    equipment compatible with the units and services with which we
    integrate and serve. Ready units will enable Soldiers as they train and
    prepare for deployment. Once activated, these modular units will
    increase our rotational depth and provide additional flexibility by
    having units that can be tailored to meet specific mission requirements
    for the Army.
        In fiscal year 2007, the Army Reserve programmed to make
    efficiencies and reintegrate 16,000 spaces to build into modular
    operational units. Additionally, we will also add 1,000 spaces to our
    Force Structure Allowance. The approximately 17,000 spaces of structure
    incorporated into our Force will help to mitigate anticipated
    shortfalls in combat support and combat service-support personnel and
    equipment according to the Total Army Analysis. The Army Reserve
    resourced force will then be a force structure of 206,000--with an
    operating force of 145,500, generating force of 48,500, and Trainee,
    Transient, Holding, and Student force of 12,000.
        The process of shifting our command and control from generating to
    operational commands is nearing completion. In the next two fiscal
    years, we will finalize the disestablishment of the 12 two-star
    readiness commands and transfer command and control of subordinate
    units to 11 one- and two-star operational and functional commands. This
    shift enables the Army Reserve to source more operational units from
    the space savings as a result of reductions in headquarters structure
    throughout the Army Reserve. Additionally, we will create structure
    savings as the four two-star Regional Support Commands (RSCs) are
    established during fiscal year 2008 to assume the base operations
    functions in support of more than 1,000 Army Reserve centers throughout
    the United States. These four RSCs will relieve operational commands of
    facility/garrison-type functions and allow these commands to focus on
    unit readiness training. The RSCs will be the Army Reserve's link to
    Installation Management Command to ensure standardization in garrison
    operations.
    Modernize
        As a result of historically low levels of modern equipment, the
    Army Reserve still faces equipping challenges, even though no Army
    Reserve unit deploys without a full complement of compatible or
    interoperable deployable equipment. In support of our transformation to
    an operational force, the Army has committed to spending approximately
    $5 billion in new equipment procurements for deploying Soldiers and
    next-deploying units in scheduled equipment deliveries between July
    2007 and June 2010. These deliveries represent some of the Army's most
    modern systems--such as the biological integrated and detection
    systems, armored security vehicles, and various models of tactical-
    wheeled vehicles.
        In fiscal year 2007, the Army Reserve fielded the joint biological
    detection system, the self-powered biological warfare agent detection
    and identification instrument suite, the all-terrain lifter Army
    system, and various communications equipment and individual weapon
    systems. The Army Reserve is also gaining aviation capability with the
    delivery of six of 36 HH-60 MEDEVAC helicopters identified in the Army
    Campaign Plan, and 12 AH-64D Longbow Apache helicopters as part of the
    Attack Helicopter Conversion program.
        The centerpiece of Army transformation as well as the biggest
    acquisition challenge is the Future Combat Systems (FCS). FCS will link
    a new generation of 14 manned and unmanned ground vehicles, air
    vehicles, sensors, and munitions. The architectural platforms within
    each of the individual systems will be designed simultaneously, and
    will ensure compatibility and interoperability of combat support and
    combat service support with the combat forces.
        The Army is modularizing all of its formations--in both the Active
    and Reserve Components--representing a net increase of new modern
    equipment required in all components, and allowing the Army to retire
    several obsolete equipment systems. Modularity seeks to make
    independent, deployable organizations at the lowest levels possible.
    Decentralizing logistics support means recreating that capability at
    unit level. Cooks, mechanics, drivers, equipment operators, and
    warehouse personnel--once concentrated above platoon, company, and
    battalion level--are now required to support independent modular units.
    This also increases the requirements for equipment, including: trucks,
    kitchen trailers, material handling equipment, and computers, as well
    as logistics information and management systems. These are items that
    are often already in short supply within the Army Reserve. Modularity
    has put increased stress on a limited inventory of Modular Force and
    Modular Force-compatible equipment available to the Army Reserve.
    Organizational Change
        Transformation is changing the way logistics support and operations
    are conducted by the Army Reserve. Command and control and
    responsibility for unit logistics readiness are being transferred from
    the Regional Readiness Commands to Operational and Functional Commands,
    such as the 377th Theater Sustainment Command in New Orleans,
    Louisiana. Four regional support commands will provide logistics
    support for pre-mobilization training and domestic operations. The
    operation of Army Reserve maintenance and storage facilities, such as
    area maintenance support activities, equipment concentration sites, and
    strategic deployment sites, will become the responsibility of the
    regional commands. Critical enablers include renovated or new
    facilities and the required logistics information and management
    technologies for effectively and efficiently managing logistics
    readiness and operations.
        The Army Reserve has a strategic commitment to fulfill the vision
    of the Army Campaign Plan. By 2013, we will have built 77 brigade force
    equivalents to include 12 multifunctional support brigades (nine
    sustainment brigades and three maneuver enhancement brigades) and 53
    functional support brigades (three Army field support brigades, one
    chemical brigade, four engineer brigades, three military police
    brigades, three petroleum, oil, lubricant brigades, one signal brigade,
    ten medical brigades, two information operations brigades, one theater
    aviation brigade, and 25 regional support groups); eight civil affairs
    brigades; and two psychological operations groups.
      --Base Realignment and Closure Execution.--BRAC 2005 has effectively
            ``flattened'' the hierarchy that characterized the Army Reserve
            force structure during the Cold War. As we convert to
            operational commands, we currently have five regional support
            groups with projected gains of two information operations
            groups, one combat support brigade, two sustainment brigades,
            one Army field support brigade, and seven expeditionary support
            commands. BRAC represents significant cost efficiencies to the
            American taxpayer via the Army Reserve; its mandate is to
            improve the support we provide Soldiers.
    Institutional Change
        Our transformation to an operational force cannot succeed without
    institutional change to adapt processes, policies, and procedures to
    meet the realities of current and future needs. A critical aspect of
    institutional change is our Business Transformation initiative, which
    challenges the Army Reserve to transform our business methods and
    culture to apply the best civilian business practices to increase
    effectiveness and efficiency.
        Our Business Transformation Office, established in April 2006 at
    the U.S. Army Reserve Command, reviews all business processes for
    waste, inefficiency, and duplication, and assures best business
    practices. One of the most effective business improvement methodologies
    the Army Reserve has adapted from the business world is Lean Six Sigma,
    a business methodology to define and analyze opportunities and to
    measure, improve, and control performance. In order to maximize the
    unique skills and certifications Army Reserve Soldiers have that are
    not normally resident within the Active Component, we have identified
    more than 50 Army Reserve Soldiers highly qualified in Lean Six Sigma
    methodologies as a result of their civilian occupations. Utilization of
    civilian-acquired skills instead of relying solely on contractors
    provides a cost avoidance of approximately $3.5 million.
        Additional best business practice oversight is conducted by the
    Army Reserve Internal Review Program to evaluate risk; assess internal
    controls; improve quality, economy, and efficiency; and foster
    stewardship. In fiscal year 2007, more than 350 internal reviews
    resulted in monetary benefits of over $34 million.
        The Army Reserve, like the Active Army, is also concerned about
    problems in Army contracting; we are, therefore, committed to improving
    our contracting operations across the Army Reserve. Our plan to
    implement improvement initiatives maintains that Acquisition Planning
    is critical for this effort to succeed. World-class acquisitions don't
    just happen--they are planned! Planning is the most pivotal activity
    the Army Reserve must perform in the acquisition process to ensure we
    get what we want, when we need it, for the most cost-effective, value-
    added, economical price.
        In the military, we are trained to plan for combat. When planning
    for and conducting combat operations, we focus on the enemy by knowing
    the enemy, developing plans to keep the enemy foremost in mind, and
    strategizing war games that allow us to enhance or adjust the plan once
    enemy contact is made. As a vital component to the Active Army, the
    Army Reserve must approach acquisition planning the same way we
    approach planning for a military campaign. For an acquisition, cost
    overruns, schedule/delivery delays, and performance shortfalls are our
    enemy. We will develop our acquisition plan via market research, and
    finally, war-game the acquisition from start to finish, applying the
    Acquisition Planning Process. We will involve our supporting
    contracting professionals in every step of the process to ensure
    contract operations best practices and proper use of resources.
    Communications
        The geographic dispersion of the Army Reserve makes communications
    and information technology (voice, data, and video) services the
    primary means of conducting command and control, managing mobilization
    timelines, facilitating training data exchange, and providing Army
    Reserve ``reach-back'' capabilities to support the Combatant Commander
    and the Soldiers in the field. As the Army Reserve transforms to adapt
    to the emerging Modular Force structure, the Command, Control,
    Communications, Computers/Information Technology infrastructure
    supporting the mission must also adapt and expand mobile services to
    those Modular Forces.
        Over the past two years, we have successfully consolidated
    information technology services including network operations,
    authentication, security/protection, e-mail, and critical application
    hosting, which have resulted in significant improvements in terms of
    systems availability and reliability. In coordination with the Army,
    the Army Reserve is executing a strategy for network convergence that
    will provide more robust access and service to Army Reserve mobile
    forces worldwide, and thereby tremendously improve the availability and
    security of these systems and application data.
        At both organizational and unit levels, the ability to communicate
    via secure video teleconferencing and secure Internet communication are
    paramount for deploying forces. Services directly affected by mission
    changes include expanded bandwidth to relieve network traffic
    saturation; force protection and home-station command operations for
    locations within the continental United States; secure audio and video
    connectivity; and support for ongoing reach-back operations that
    provide logistics and personnel support and satellite operations.
        Progressive change, as outlined in the Transform imperative, is
    essential for the Army Reserve to improve capabilities and to ensure
    our ability to regain balance as an operational federal force.
                          ready for the next 100 years
        The Army Reserve will require considerable resources and several
    years to optimize structure and build capacity for the future. Our plan
    to mitigate near-term risk and regain balance by 2011 centers on the
    four imperatives described in this report: Sustain, Prepare, Reset, and
    Transform. Recent decisions by the President, the Secretary of Defense,
    and Congress have accelerated the growth of the Total Force, increased
    the Army's access to the Reserve Component, and generated momentum
    needed to restore balance for the Army and the Army Reserve. Due to
    current operational demands, however, an imbalance exists between our
    supply of forces and capabilities and the Combatant Commanders'
    requirements for them. To enhance readiness for current operational
    demands and future challenges, we require sustained, predictable
    funding and operational timelines under ARFORGEN for the foreseeable
    future.
        Although we have adapted our training for counterinsurgency
    operations in Iraq and Afghanistan, we must rebuild readiness across
    the Army Reserve to succeed throughout this persistent conflict.
    Funding for the Army Reserve not only affects equipment readiness, but
    also Soldier readiness for current and future peacetime military
    engagements and major combat operations.
                Sustain Army Reserve Soldiers, their Families, and their
                        Employers
        Failure to provide the resources necessary to sustain Army Reserve
    Soldiers, their Families, and their employers jeopardizes the ability
    for the Army Reserve to respond when the Nation calls. The Army Reserve
    has been able to manage the risk of mission failure thus far because we
    have not faced a major contingency operation in conjunction with
    support to Operation Enduring Freedom and Operation Iraqi Freedom. Such
    a contingency, especially one in the continental United States, would
    compromise the ability of the Army Reserve to train and supply the
    force for deploying missions. To mitigate this risk we continue a two-
    pronged approach: (1) provide Soldiers, their Families, and their
    employers the resources, programs, and services they deserve and the
    Army requires to ensure readiness and to sustain the All-Volunteer
    Force; and (2) procure modern equipment, appropriate facilities, and
    the full-time support personnel necessary to train the force and
    maintain equipment.
        Failure to motivate our current and future Warrior Citizens to
    serve their Nation and to take care of our Soldiers, their Families,
    and their employers will adversely impact our ability to transform to
    an operational force.
                Prepare the Army Reserve for Success in the Current
                        Conflict
        Without an immediate and continuing investment in procuring
    training dollars and sustaining enough Modular Force equipment to
    completely equip the Army Reserve, the ability to meet pre-mobilization
    training and mobilization objectives under the ARFORGEN process will be
    put at risk. Training on obsolete equipment is ineffective and
    wasteful. Failure to fund the maintenance (including parts, full-time
    personnel, and storage facilities) of new equipment will be more
    expensive in the long run. To mitigate this risk, the Army Reserve
    continues to fund the training resource model, including full-time
    personnel and the best available equipment. Additionally, the Army
    Reserve continues to fund and fully integrate Army Reserve logistics
    information technology to sustain future Army requirements.
                Reset the Army Reserve to Rebuild for Future Contingencies
        Shortfalls to repairing and replacing our equipment directly impair
    unit readiness. Lack of retraining and revitalizing our Soldiers
    directly impacts personnel readiness (to include Soldiers' Families and
    their employers). Simply put, failure to fully fund resetting the
    force, including equipment and people, hinders our ability to perform
    our Title 10 responsibilities. To mitigate risk during reset we will
    bring all of our current resources to bear on the problem. We will
    consolidate repair operations whenever and wherever feasible. We will
    consolidate training activities where we can. However, program support
    is critical in order to correct equipment shortages incurred as a
    result of the operational tempo our equipment has endured during this
    persistent conflict.
                Transform the Army Reserve to Meet the Demands of the 21st
                        Century
        By increasing the depth and breadth of its overall capacity, Army
    Reserve transformation is improving the Army Reserve's ability to
    execute and support protracted operational requirements. Sustained
    resources to continue this transformation will improve the readiness of
    non-deployed Army Reserve forces, reduce stress on Army Reserve
    Soldiers, their Families, and their employers, and improve the
    readiness of Army Reserve equipment and facilities. Failure to support
    Army Reserve transformation compromises the Army's ability to develop
    relevant capabilities to respond to current and future operations. To
    mitigate this risk, the Army Reserve must continue to receive full
    funding of its budget request and retain flexibility to manage the
    force.
                The Next 100 Years
        The Army Reserve is a community-based, All-Volunteer, federal
    force. As the Commission on the National Guard and Reserves recently
    concluded, ``There is no reasonable alternative to the nation's
    continued reliance on the Reserve.'' Ensuring that our force of skill-
    rich, Warrior Citizens remains relevant requires a significant
    investment from our Nation. Sustaining the Army Reserve requires
    resources to fund issues such as quality of life, restructuring
    initiatives, and the ability to provide competitive pay and benefits
    for our Soldiers. Recruiting and retaining our Warrior Citizens
    involves support from our communities, Families, and employers.
        During our first 100 years, the Army Reserve repeatedly provided
    the most cost-effective federal force to the Nation. To remain a value-
    added, skill-rich Force that is the strength of the Nation requires
    your support to the Army Reserve now and in the future. We remain
    committed as a Force that is Army Strong!

        Senator Stevens. Our next witness is Vice Admiral John
    Cotton, Chief of the Navy Reserve.
    STATEMENT OF VICE ADMIRAL JOHN G. COTTON, CHIEF, NAVY
                RESERVE
        Admiral Cotton. Good morning, Mr. Chairman, and thanks for
    the nice comments. It has, indeed, been a privilege and real
    honor to serve the past 4 years.
        As a result of our Active Reserve integration efforts in
    the United States Navy, I am proud to say this morning that our
    Navy Reserve is slightly over strength. That is a good position
    to be in. We recruit as a total force and we emphasize sailor
    for life and a continuum of service. It frankly has never been
    better. About 70,000 reservists this morning, about 21,000 on
    orders, about 5,000 are mobilized, and about 4,000 are in
    theater supporting Central Command.
        We are fully funded to support the fleet and the combatant
    commanders, and that is the great news.
        If I look back over the 4 years, the one item that we have
    not fixed that we talked about here 4 years ago is still a
    single pay and benefits system for all the services because
    back here in the States, we have our own systems. We need to go
    forward. It is very tough for the combatant commanders with all
    the joint forces that are there. I know we are working on it.
    We have some solutions, but it always seems to be a couple of
    years out. So I think that is something we need to work on in
    the future.
        We also have all been working together. We mobilize a lot
    better than we used to. We fight extremely well together. We
    demobilize a little bit better. We still need to put a lot more
    attention, I think, into our wounded warrior efforts and
    especially our family efforts. And back in our States, each
    service cannot do it alone. We need to do it jointly, and I
    think that is where the Guard and Reserve components can really
    help out especially the active component members that are going
    forward on IAs and their families move back to their home
    States.

                               PREPARED STATEMENT

        So, sir, I will put my statement in the record. I thank you
    for your support, especially to our National Guard and Reserve
    equipment account that we use to plug the holes where we have
    emergent needs for our warfighters, especially our
    expeditionary maritime security forces. Thank you, sir.
        Senator Stevens. Thank you, Admiral.
        [The statement follows:]
               Prepared Statement of Vice Admiral John G. Cotton
                                  introduction
        Chairman Inouye, Senator Stevens, and distinguished members of the
    committee, thank you for the opportunity to speak with you today about
    the capabilities, capacity, and readiness of the dedicated men and
    women who serve in our Navy's Reserve Component (RC).
        With continued emphasis on Active Reserve Integration (ARI), our
    Navy Reserve force is more ready, responsive, and relevant as a full
    partner in the Navy's total force. Alongside Active Component (AC)
    sailors, RC sailors provide integrated operational support to the Fleet
    and Combatant Commands (COCOMs). Nearly 70,000 Navy reservists are
    deployed in support of global coalition forces, at their supported
    commands or in strategic reserve, ready 24/7/365 to surge to homeland
    defense. Since September 11, 2001, over 50,000 Navy reservists have
    been mobilized in support of the global war on terror, and on any given
    day more than 21,000 talented men and women, or 30 percent of the Navy
    Reserve, are on some type of orders as part of the total Naval
    workforce, fully leveraging their military and civilian skill sets and
    capabilities. Included are about 6,000 RC sailors mobilized in support
    of Operations ENDURING FREEDOM and IRAQI FREEDOM (OEF/OIF), and with
    this steady state requirement, we maintain the capacity to rapidly
    increase contingency support with more than 28,000 additional ready
    reservists.
        Whether supporting combat operations in Iraq or Afghanistan,
    providing humanitarian assistance and disaster relief at home or abroad
    or supporting daily Navy missions at every Fleet and COCOM, Navy
    reservists provide integrated operational support while continuing to
    maintain the RC's role as a strategic baseline.
        As demonstrated through force generation, deployment, and
    redeployment, it is clear that RC forces meet two significant needs of
    our Navy. First, reservists deliver a strategic capability and capacity
    in support of major combat operations, and second, they provide
    operational augmentation to meet predictable and periodic routine
    military missions. By continuing to fully develop ARI, our Navy has
    institutionalized an operational Navy Reserve. The Navy simply cannot
    meet all Fleet and global war on terror requirements without the many
    contributions of its Reserve force.
        The vision of the Navy Reserve is ``Support to the Fleet--Ready and
    Fully Integrated.'' Our overall Navy Reserve force effectiveness is
    measured by the level of integrated operational support it provides to
    the Fleet and COCOMs. While some RC sailors are only able to perform
    the minimum contractual requirement of 2 drill-days a month and 2 weeks
    active duty each year, over two-thirds of the force are far exceeding
    these minimums while performing essential operational support. When the
    work is predictable, periodic and requires special skill sets,
    utilizing a ready and responsive reservist is often the most cost
    effective and capable solution.
        On September 29, 2007, Admiral Gary Roughead assumed the watch as
    our 29th Chief of Naval Operations (CNO) and issued his top three
    priorities to the fleet: current readiness, a Navy for tomorrow, and
    people.
                               current readiness
        Maintaining our warfighting readiness demands that we are agile,
    capable, and ready. We generate forces for the current fight and employ
    our Navy much differently than in years past. Simultaneously, we
    provide ready naval forces and personnel for Joint Force Commanders,
    sustain forward presence, fulfill commitments to allies and respond to
    increasing demands in regions where we have not routinely operated,
    specifically South America and Africa.
        To provide sustained combat readiness, the Navy has moved from
    predictable deployment cycles to a more flexible Fleet Response Plan
    (FRP), under which a surge Navy is able to provide a requirement-based
    and continually ready posture which produces greater warfighting
    capability at reduced cost. As part of the FRP, a fully integrated and
    ready Navy Reserve provides an enhanced surge capacity to meet
    validated requirements with individuals and units. Our FRP increases
    operational availability and allows us to operate with greater
    flexibility. The RC continues to emphasize current readiness and is
    capable of engaging future geopolitical challenges as an affordable and
    effective element of our total force.
        Our force readiness is comprised of two interdependent categories:
    sailor and family readiness. Sailor readiness is defined by the
    medical, physical and administrative preparedness of the sailor. We
    also recognize the fundamental contribution of the Navy family to
    overall readiness. Therefore, we must continue to provide families
    better and more responsive assistance which enables them to be prepared
    for their sailor's call to service.
        Medical Readiness.--Navy Reserve continues to be a leader in
    individual medical readiness. Four years ago, Navy Reserve was 63
    percent medically ready to deploy. Today, our force exceeds 84 percent
    medically ready, which leads all military components. Our significant
    improvement can be attributed in part to the Medical Readiness
    Reporting System (MRRS), which has given Navy leadership improved
    visibility of the medical readiness of the Force. As a comprehensive
    web-based management tool, MRRS has enabled leaders to identify
    deficiencies and promptly address them, as well as plan for future
    medical readiness requirements. Due to the success of MRRS in the Navy
    Reserve, all Navy and Marine Corps commands are being incorporated into
    the system, which will automatically report accurate and timely medical
    readiness. Additionally, the United States Coast Guard is also planning
    to implement MRRS this year.
        Physical Readiness.--Navy Reserve continues to emphasize physical
    readiness for all sailors. We have established a culture of fitness by
    emphasizing both individual and command accountability for physical
    readiness. Every Navy unit has a Command Fitness Leader (CFL) who is
    responsible to the Commanding Officer (CO) to administer the unit's
    Fitness Enhancement Program (FEP), which emphasizes individual physical
    readiness. Our COs are held accountable in their personal evaluations
    for their sailors' performance in the FEP. Commanders have visibility
    into the physical readiness of both individual sailors and larger units
    via the web-based Physical Readiness Information Management System
    (PRIMS). CFLs are enabled to enter data from physical readiness tests
    into PRIMS for each member of their command. Commanders then have the
    ability to accurately assess their units' physical readiness and adjust
    the FEP as necessary. Sailor readiness is also a primary discussion
    topic during weekly Reserve force communications, placing further
    command emphasis on the importance of medical and physical
    requirements.
        Administrative Readiness.--The Navy Reserve has enhanced
    administrative readiness through the employment of the Type Commander
    (TYCOM) Readiness Management System--Navy Reserve Readiness Module
    (TRMS-NRRM), which provides a scalable view of readiness for the entire
    force. Commanders can quickly determine readiness information for
    individuals, units, activities, regions, and many other desired
    echelons. TRMS-NRRM, a Navy Reserve developed system, has served as a
    prototype for the Defense Readiness Reporting System--Navy (DRRS-N),
    which is currently under development by Commander, U.S. Fleet Forces
    Command for use by the total force. DRRS-N will provide a database to
    collect and display readiness information across the force enabling
    commanders to make real-time capability-based assessments and
    decisions.
        Navy is considering additional options for total force systems that
    will reduce administrative impediments. The administrative
    inefficiencies created by multiple electronic pay and manpower systems
    create waste and unnecessary burdens on leadership and hinder force
    readiness. A common AC/RC pay system is crucial to the success of our
    Sailor for Life and Continuum of Service initiatives. In the future,
    manpower transactions will ideally be accomplished on a laptop with the
    click of a mouse, and records will be shared through a common data
    repository with all DOD enterprises. Navy fully supports the vision of
    an integrated set of processes to manage all pay and personnel needs
    for the individual and provide necessary levels of personnel visibility
    to support joint warfighter requirements. Manpower management tools
    should enable the ability for a financial audit of personnel costs and
    support accurate, agile decision-making at all levels of DOD through a
    common system and standardized data structure.
        One constraint to these initiatives is the RC order writing
    process. Our current system has roughly 30 types of duty, including
    Inactive Duty for Training (IDT), Inactive Duty for Training-Travel
    (IDT-T), Annual Training (AT), Active Duty for Training (ADT), and
    Active Duty for Operational Support (ADOS). Numerous funding categories
    of orders are inefficient, wasteful and inhibit Navy's ability to
    access reservists and quickly respond to Fleet and COCOM requirements.
    Process delays are especially troubling at a time when we are relying
    on our reservists to serve as ``first responders'' in the case of a
    domestic emergency. A reduction in the number of duty types, coupled
    with a well-developed, web-based personnel management system, will
    enable RC sailors to rapidly surge to validated requirements. In
    addition to multiple types of orders, the disparate funding processes
    are equally complex. The consolidation of most RC order writing to the
    Navy Reserve Order Writing System (NROWS) has been a significant
    evolution in Navy's effort to integrate its Total Force capabilities by
    aligning funding sources and accurately resourcing operational support
    accounts.
        Family Readiness.--We recruit the sailor, but retain the family;
    which means family readiness is more important than ever as we face the
    challenge of constant conflict with the expectations of multiple,
    predictable and periodic deployments. Navy is dedicated to the support
    of our families and is engaged in an ongoing effort to expand family
    support programs. Since our sailors are stationed in all 50 States, we
    have improved access to available family support resources, including
    those of the Guard. We have developed a family support program that
    employs professional administrators at each Navy Region Reserve
    Component Command (RCC) who are knowledgeable in every aspect of sailor
    and family assistance, especially for those mobilized and deployed.
    Recent initiatives include the Returning Warrior Workshops (RWW),
    pioneered by Navy Region Southwest RCC, which assist returning warriors
    and their families with a smooth transition from a deployed status. The
    weekend-long sessions include interactive group presentations by
    trained facilitators, breakout sessions, vendor information, and one-
    on-one counseling in a conference-style setting. Qualified facilitators
    help the participants cope with potentially sensitive and emotional
    discussions as they adjust to family life and civilian employment. By
    continually incorporating lessons learned, RWW effectively deal with
    the broad array of issues facing Navy families before, during and after
    deployments. Workshops also provide additional resources for sailors as
    they return to non-mobilized status.
                              a navy for tomorrow
        The global war on terror has demonstrated the increasing importance
    of the Navy's expeditionary capabilities. Emergent requirements enabled
    Navy leadership to program the expansion of our core maritime
    capabilities into the coastal and inland environments, and Navy Reserve
    continues to perform many important roles in these evolving warfighting
    operations. Almost half of the Navy Expeditionary Combat Command (NECC)
    30,000 sailors are reservists. NECC is an adaptable force which deploys
    Navy capabilities in the green and brown water environments and ashore.
    Our sailors perform a variety of global missions, including security on
    North Arabian Gulf oil platforms, counter-improvised explosive device
    operations in Afghanistan and Iraq, customs inspections in Kuwait and
    drilling and developing potable water wells in villages in the Horn of
    Africa.
        Reservists comprise over 90 percent of the Navy Expeditionary
    Logistics Support Group (NAVELSG), a component of NECC. NAVELSG
    performs air cargo handling missions, customs inspections, freight
    terminal operations, and ordnance handling. Navy Customs Battalion
    (NCB) UNIFORM recently deployed with more than 400 reservists and
    typifies the diversity and relevance of the Navy Reserve as it supports
    the war from Main Street, USA. More than 107 Navy Operational Support
    Centers (NOSCs) in 43 States, Washington, DC, Puerto Rico, and Guam
    mobilized our diverse group of UNIFORM sailors who range in age from 21
    to 58, and include; police officers, school teachers, postal clerks,
    safety inspector agents, engineers, trauma nurses, and carpenters. NCB
    UNIFORM is the seventh rotation of Navy Reservists activated to perform
    this unique mission in support of OIF.
        Navy reservists are 60 percent of the Naval Construction Force
    (SEABEES), who help fulfill more than one-third of NECC's manpower
    requirements. SEABEES are engaged throughout Afghanistan and Iraq
    constructing base camps, roads, and airfields, and repairing bridges
    and buildings. Sailors have constructed school dormitories and water
    wells in Djibouti, erected shelters for flood victims in Ethiopia and
    provided humanitarian relief in Pakistan, Indonesia, Bangladesh, East
    and West Timor, and the Philippines.
        The Navy League recently honored a Reserve SEABEE with the
    prestigious Admiral Ben Morell Award for Logistics Competence. Senior
    Chief Equipment Operator (SEABEE combat warfare) Jason Jones, from
    Naval Construction Battalion 21, mobilized and deployed to Kuwait with
    a detachment of 145 shipmates. Drawing from his civilian construction
    skills, he successfully led his sailors to complete several vital
    projects, including the rebuilding of an operationally critical
    airfield in Afghanistan. Similar NECC RC operational support is
    evidenced daily in Naval Coastal Warfare with Embarked Security
    Detachments (ESDs), Maritime Civil Affairs Group (MCAG) and the
    Expeditionary Combat Readiness Center (ECRC). ESD sailors provide force
    protection for naval assets in the Suez Canal, Arabian Gulf, and Strait
    of Hormuz.
        Because of their experience, Reserve sailors frequently train AC
    security team members. The MCAG works directly with civil authorities
    and civilian populations in the maritime environment and is capable of
    addressing issues such as maritime law, marine fisheries, port
    operations, security and immigration. ECRC, 25 percent RC, is a
    dedicated team of more than 200 professionals overseeing the training,
    equipping, deploying and redeploying of augmentation forces.
        Navy Reserve sailors are fully integrated into the Naval Aviation
    Enterprise (NAE) and play critical roles in training, air logistics,
    adversary support, counter narcotics operations and combat support.
    Exemplifying the relevance to the total force, Reserve instructor
    pilots fly nearly 1,000 sorties per week while assigned to squadron
    augment units under the Chief of Naval Aviation Training (CNATRA).
    While only 10 percent of CNATRA's training squadron instructor cadre
    are reservists, they are responsible for about 17 percent of the
    instructional flight events. Fleet Logistics Support Wing assets are
    routinely deployed and provide responsive air logistics support to the
    Fleet and COCOMs. The active and reserve sailors of Helicopter Sea
    Combat Squadron-84 are forward deployed in Iraq in direct support of
    combat operations. The Reserve sailors of Electronic Attack Squadron-
    209 recently returned from a 3-month deployment to Afghanistan. The
    Reserve sailors of Helicopter Antisubmarine (Light) Squadron SIX ZERO
    and Carrier Airborne Early Warning Squadron SEVEN SEVEN deploy in
    support of counter-narcotics operations under United States Southern
    Command. The missions that RC sailors perform serve to make the NAE
    more cost-effective and efficient, while capitalizing on the experience
    and maturity of talented reservists.
        Expeditionary Capabilities. The global war on terror examples of
    surge support include:
    SEABEES
    Engineers
    EOD
    Supply Corps
    Coastal Warfare
    Cargo Handling
    Customs Inspectors
    Civil Affairs
    Chaplains
    Medicine/Corpsmen
    Trainers/Instructors
    JTF Staff Augmentation
    Intelligence
    Linguists
    Public Affairs
    IT/Network Support
    Anti-Terrorism/Force-Protection (AT/FP)
    Law Enforcement
    Logistics & Logistical transport/airlift
        Navy Medicine.--We value our RC doctors, nurses and corpsmen
    serving on hospital ships during disaster relief and humanitarian
    missions and supporting the Fleet Marine Forces ashore. At Landstuhl
    Regional Medical Center, Germany, 332 of 361 positions are currently
    filled with Navy Reserve medical professionals. When USNS COMFORT (T-AH
    20) left its homeport in June 2007 for a 4-month humanitarian
    deployment, 10 Navy reservists embarked. RC medical professionals are
    critical to Navy's overall readiness, but are often unable to mobilize
    for extended periods due to the requirements of their civilian
    practices. Therefore, Navy is working to provide them flexible service
    options such as shorter but more frequent mobilizations and
    deployments. Feedback from RC medical professionals and potential
    recruits indicates that 90 days is optimum, but up to 6 months can be
    performed with adequate notification.
        Alignment.--Flexibility is a key component to the success of ARI,
    and several initiatives aim to facilitate more effective and efficient
    operational support. Former Reserve Readiness Commanders now serve as
    integrated Navy Region RCCs, responsible to the region commanders for
    RC readiness, training, assets and surge capabilities within the
    region. Additionally, Naval Reserve Centers were renamed Navy
    Operational Support Centers to indicate that our mission is to provide
    ready, responsive, and relevant integrated operational support to their
    supported commands, the Fleet and COCOMs. ARI remains the catalyst for
    aligning our organizations and processes to CNO's guidance and
    strategic goals, providing increased warfighting wholeness and greater
    return on investment to taxpayers. Navy Reserve continues to lead
    change while emphasizing speed, agility, innovation and support to our
    customers; the Fleet, COCOMs, our sailors, and their families.
                                     people
        Our sailors, Navy civilians and contractors are talented, dedicated
    professionals. We must devote our resources and shape our policies to
    ensure they are personally and professionally fulfilled by their
    service. Recruiting, developing, and retaining diverse and capable men
    and women are imperative to the success of our future Total Force. We
    must continually address the changing national demographic in order to
    remain competitive in today's employment market. Only 3 out of 10 high
    school graduates meet the minimum criteria for military service, and
    the propensity of our Nation's youth to serve in the military is
    declining in many areas.
        The next generation, known as ``Millennials,'' is now entering the
    workplace. These young men and women expect to change jobs or career
    fields multiple times, and they expect a life/work balance that permits
    them the opportunity to serve as well as attend to personal and family
    needs. Career path pay and benefits must evolve to a more flexible
    system that supports ``off'' and ``on'' ramps to and from active to
    reserve service, as well as temporary sabbaticals. Born into a
    globalized world saturated with information and technology, Millennials
    comprise 43 percent of our Navy and are more accomplished than previous
    generations. They are a technologically savvy and cyber-connected group
    who may find the military's hierarchical command and control structure
    contradictory to the flat social networks they are accustomed to
    navigating. The different paradigm under which this generation views
    the world and the workplace has implications for how our Navy attracts,
    recruits and retains top talent.
        The members of the Millennial generation are reticent to consider
    military service as their first career option. The Navy must recognize
    and respect generational traits to ensure we appeal to those talented
    young people who we seek to recruit and retain. Today's influencers,
    most of whom have never served in the military, are often not inclined
    to steer Millennials toward a military career. Our focus in the next
    several years is building a variety of service options to entice
    potential recruits and striving to capitalize on the diversity and
    differences of our total force to ensure our Navy is a family-friendly,
    ``Top 50'' workplace.
        Our talented personnel are the foundation of all we do, and Navy
    Reserve is dedicated to policies, programs, and initiatives that
    improve the quality of service for our sailors and their families. In
    fiscal year 2007, 12 percent of enlisted and 23 percent of officers who
    transitioned from the AC chose to affiliate with the Navy Reserve.
    Recent initiatives intended to attract transitioning sailors include
    higher affiliation bonuses, mobilization deferment and the Fleet-to-
    NOSC Program. Affiliation bonuses as high as $20,000 are offered to
    sailors possessing specific skill sets, particularly those in high
    demand for the global war on terror.
        Mobilization Deferment.--To afford transitioning AC sailors who
    affiliate with the RC ample time to become settled in their civilian
    careers, the mobilization deferment policy was established. All
    veterans who affiliate with Navy Reserve within 6 months of
    transitioning from the AC qualify for a 2-year deferment from
    involuntary mobilization, and those who affiliate with Navy Reserve
    within 12 months are eligible for a 1-year deferment.
        In order to be a competitive employer, our Navy realizes that we
    must offer opportunities for personnel to pursue their respective
    interests. We have initiated the AC to RC transition program, which is
    changing the paradigm of sailors who decide to terminate their AC
    service at the end of their enlistment. By providing veterans an
    informed, systematic option to convert to the RC, we preserve the
    ability to surge their talents and realize a much higher return on
    their initial training investment. Previous force shaping efforts have
    been designed to achieve a specific end strength, or ``fill,'' but our
    focus has shifted to building a competency-based workforce with the
    right skill sets, or ``fit,'' to more rapidly and effectively meet
    emergent global war on terror requirements.
        Created by the Commander, Navy Recruiting Command, the Fleet-to-
    NOSC Program streamlines the Navy Reserve affiliation process. Thirty-
    two commands are currently participating in the program, and since its
    inception in November 2006, 27 percent more sailors have affiliated. In
    fiscal year 2009, this program will be expanded to allow AC sailors to
    select from vacant Reserve billets prior to transitioning. To
    facilitate the continuation of a Navy career, members will also have
    visibility of Navy Reserve positions located in the geographic area
    where the sailor plans to reside.
        Health Care.--We have some of the finest medical professionals in
    the world serving in our Navy and the health care they provide to our
    sailors is a valuable recruitment and retention incentive. Our missions
    in OEF and OIF increased the demand for medical services in combat and
    casualty care. Another more complex aspect of health care is the mental
    well-being of our sailors returning from combat operations. Medical
    professionals are rapidly learning more about assessing and treating
    the effects of mental health issues associated with war, such as post
    traumatic stress and traumatic brain injury. We are constantly
    integrating these lessons into our health care system.
        Wounded Warrior/SAFE HARBOR Program.--Our care for combat wounded
    personnel does not end at the Military Treatment Facility (MTF). The
    Navy established the SAFE HARBOR Program in 2005 to ensure seamless
    transition for the seriously wounded from arrival at an MTF through
    subsequent rehabilitation and recovery. As soon as our warriors are
    medically stabilized and arrive at an MTF, SAFE HARBOR staff members
    establish close contact with each severely injured sailor. Typical
    assistance provided by SAFE HARBOR includes; personal financial
    management, member or family member employment, permanent change-of-
    station moves, non-medical attendant orders for assisting attendants,
    post-separation case management, travel claims, Veterans Administration
    and Social Security benefits and resolving administrative issues. Since
    its inception, 193 sailors, including 29 from the RC, have benefited
    from the program. We are committed to providing the individualized non-
    clinical care that each of these sailors and their families deserve.
        Continuum of Service.--Essential to a dynamic, diverse, and capable
    Navy workforce is establishing a continuum of service by which a sailor
    may serve and reserve over the course of a lifetime. A Sailor for Life
    philosophy removes administrative and policy impediments and creates
    more flexibility to transition between active and reserve statuses,
    manage a civilian career, pursue advanced education and account for
    unique life circumstances. The Navy has asked Congress, via the
    Secretary of Defense, for authorization to begin a pilot program in
    fiscal year 2009. We plan to enable sailors to seamlessly navigate
    ``off ramps'' to the RC and ``on ramps'' to the AC. Our vision also
    provides the taxpayer a better return on investment by extending the
    opportunities for our personnel to serve, thereby taking full advantage
    of both military and civilian training and work experience. A well-
    developed continuum of service will create a Sailor for Life, ready to
    surge in support of national interests and defense.
        Navy continues its total force approach to manpower management by
    utilizing an enterprise framework and providing cost-wise readiness. We
    are improving processes to deliver increased readiness and combat
    capabilities, provide better organizational alignment and recapitalize
    our Navy. The Navy Reserve has the capacity to meet current and future
    requirements and to continue to transform into the right Force for
    tomorrow.
                                    summary
        Since September 11, 2001, over 50,000 Navy Reservists have been
    mobilized to support the GWOT. Leveraging unique military and civilian
    skill sets and capabilities, our RC continues to transform and increase
    the effectiveness and efficiency of our commands while meeting all
    Fleet and COCOM requirements. As we strive to provide more responsive
    and relevant operational support, Navy Reserve will strengthen our
    culture of continual readiness while balancing predictable and periodic
    mobilizations for contingencies. Yes, we are asking more of our
    reservists, but they are responding and performing magnificently across
    all Navy enterprises while surging for the GWOT, serving as a strategic
    baseline and maintaining a ready alert posture for homeland
    contingencies. Our total Navy is a powerful force which will continue
    to enhance the opportunities for our sailors and their families to
    serve and reserve. On behalf of the sailors, civilians and contractors
    of our Navy Reserve, we thank you for the continued support of Congress
    and your commitment to our Navy's total force.

        Senator Stevens. The next witness is Lieutenant General
    John Bergman, Commander of the Marine Corps Reserve. General.
    STATEMENT OF LIEUTENANT GENERAL JACK W. BERGMAN,
                COMMANDER, MARINE FORCES RESERVE, UNITED
                STATES MARINE CORPS RESERVE
        General Bergman. Good morning, Mr. Chairman, again and
    thank you so much for your kind words.
        I am not the only one retiring from the leadership of the
    Marine Corps Reserve this summer. My sergeant major, Jimmy
    Cummings, will retire in August with over 30 years of service,
    and he is the reason that I can travel and do things freely
    because I know that those 60,000 to 70,000 young enlisted
    marines that we have under our command are well taken care of.
    In fact, he just returned from Alaska visiting our AT battalion
    up there, and he said they are plenty good on cold weather
    gear, but they need some other weapon strengths. We are going
    to take care of that.
        Over the last several years, as we have realized that we
    are going to be in the long war for literally generations, the
    development of the force generation model within the Marine
    Corps has proven already to be paying dividends. What that
    means is we can tell an individual, we can tell the Congress,
    we can tell OSD when a unit is going with a level of
    predictability that before was not there. It was previously
    kind of a pick-up ball game, to be quite honest.
        With that predictability now to tell that reservist 5 years
    from now you will be headed out with your unit again, it allows
    us to train, first of all, recruit to that unit, then train to
    it, set it up in such a way that over a 4- to 5-year period,
    building blocks of the training can be designed in order to, in
    the short term, prior to a deployment, possibly beyond the step
    of homeland defense, homeland security, humanitarian
    assistance, disaster relief missions, in preparation for a
    worldwide deployment at the end of the dwell time.
        It is adaptable. We know that the enemy changes their
    tactics as quickly as we change ours. With the predictive model
    of the force generation piece, we can adapt our training so
    that when those marines go to fight, they have the latest of
    the tactics, techniques, procedures that are going to enable
    them to fight and win.
        Last, it is affordable. When you predict that far out, you
    know that a unit that is in the beginning of its dwell time may
    not necessarily need the resources and equipment and training,
    but it may need it more on the post-deployment, family support
    side to make sure that everybody assimilates back into society.
        So the force generation model will allow us for the long
    term to be able to tell the people when they are going and to
    be able to tell the Congress and everybody else how much it is
    going to cost in the meantime and where we need to place our
    resources to keep our readiness level up.
        Last, on the family readiness side, the Marine Corps,
    through the efforts of General Conway, has gone to a
    professional family readiness officer group where we are in the
    process of hiring people for full-time support of our units,
    both Active and Reserve, so that at all times, whether they are
    deployed or whether they are home in dwell time, we have a
    professional network that will provide the continued support.
    And that, dovetailing with the Yellow Ribbon Panel and all the
    efforts that are coming out from that, is a nice dovetailed
    approach to increasing the ability of our marines and their
    families and our sailors who serve with us to maintain a
    healthy level of physical and mental readiness.

                               PREPARED STATEMENT

        Sir, again, it is a pleasure to be here with you all today,
    and I look forward to your questions.
        Senator Stevens. Thank you very much.
        [The statement follows:]
            Prepared Statement of Lieutenant General Jack W. Bergman
        Chairman Inouye, Senator Stevens, and distinguished members of the
    subcommittee, it is my honor to report to you on the state of your
    Marine Corps Reserve as a major contributor to the total force Marine
    Corps.
        Your Marine Corps Reserve fully understands that the road ahead
    will be challenging--not only in the immediate conflict in Iraq, but in
    subsequent campaigns of the long war on terror, which we believe to be
    a multi-faceted, generational struggle. In an environment where the
    total force Marine Corps must be able to rapidly adapt to broad
    strategic conditions and wide-ranging threats, your Marine Corps
    Reserve, a primarily operational Reserve, stands ready to meet the
    challenges before us.
        We continue to recruit and retain the best of our Nation's sons and
    daughters. We continue to train them in tough, realistic scenarios and
    we continue to provide them the best equipment available.
        On behalf of all our marines and their families, I would like to
    take this opportunity to thank the committee for your continuing
    support. The support of Congress and the American people reveal both a
    commitment to ensure the common defense and a genuine concern for the
    welfare of our Marines and their families.
                          today's marine corps reserve
        Today's Marine Corps Reserve is firmly committed to and capable of
    war fighting excellence and continues to be a major contributor to the
    total force Marine Corps. We remain steadfast in our commitment to
    provide Reserve units and personnel who can stand as full partners with
    their active component counterparts while seamlessly performing in all
    contingencies. Today's Marine Corps Reserve continues to maintain the
    pace during the longest mobilization period in our history, and will
    continue to meet the challenge of sustaining that pace for the
    foreseeable future.
        Last year I reported to this committee on the implementation of an
    integrated total force generation model that would lay out future
    activation and deployment schedules for Marine units. The model was
    designed to provide predictability for the individual Reserve marine
    who is striving to strike a balance between family, civilian career,
    and service to community as well as country and Corps. I am happy to
    report that implementation has been successful and we are about to
    activate the third rotation based upon the model.
        To date, we have activated and deployed 6,600 marines in two
    rotations to Operations Iraqi and Enduring Freedom based on the model
    and are activating approximately 2,400 in April, May, and June of this
    year in order to train and deploy late summer to early fall. The
    predictability the force generation model provides has been well
    received by the Reserve marine who can now confidently plan for the
    future; whether going to school, building a civilian career, or making
    major family decisions.
        The force generation model continues to assist service and joint
    force planners who can count on a consistent flow of manned, equipped,
    trained, and ready selected Marine Corps Reserve units to support
    future operations in the long war. This steady flow of Reserve force
    packages also supports our active component in reaching their stated
    goal of 1:2 dwell time. The model, based on a 1-year activation to 4-
    plus years in a non-activated status, continues to be both supportable
    and sustainable, thus providing the Marine Corps with a truly
    operational Reserve force. Predictable activation dates permit unit
    commanders to focus their training on core mission capabilities early
    in the dwell and then train to specific OIF and OEF mission tasks once
    they are within 12 to 18 months of activation. Furthermore, regularly
    scheduled dwell time enables our units to recover from past activation
    practices that had required substantial cross-leveling while
    simultaneously degrading parent unit cohesion in order to deploy combat
    capabilities. With each subsequent rotation, the requirement to cross-
    level Reserve units decreases. In fact, for an upcoming activation of
    2nd Battalion, 23d Marine Regiment, we foresee little to no required
    cross-leveling of enlisted personnel in order to activate a full
    battalion.
        We believe the full benefit of the force generation model will be
    realized once we have completed a full cycle of rotations, which is
    presently nine rotations per cycle, and the active component reaches
    the authorized end strength of 202,000. That, coupled with our use of
    the force generation model, will be instrumental in the Reserve
    component migrating to a 1:5 dwell time.
        In addition to the 6,600 marines activated and deployed in support
    of OIF and OEF, an additional 4,000 marines from Marine Forces Reserve
    deployed worldwide in support of joint/combined security cooperation
    exercises in the past year as we continue to fill the gap left by a
    lack of available active component forces. Between OIF and OEF and
    security cooperation exercises, nearly one-third of our force has
    deployed outside the continental United States both in an activated and
    non-activated status, again, demonstrating the operational nature of
    the Marine Corps Reserve. We believe that this level of operational
    tempo will continue and we are prepared to maintain and sustain this
    pace for the foreseeable future.
        During this past year, more than 3,500 marines from Fourth Marine
    Division have served in Iraq. Included are two infantry battalions, as
    well as armor, reconnaissance, combat engineer, and truck units. A
    highlight during this past year was the deployment of Battery F, 2nd
    Battalion, 14th Marine Regiment, a Reserve unit from Oklahoma City.
    Battery F was the first Marine Corps High Mobility Artillery Rocket
    System (HIMARS) unit to be deployed in a combat role; thus
    demonstrating the success of horizontal fielding of equipment within
    the total force Marine Corps.
        The Division also deployed two of its regimental headquarters in
    the role of Marine Air Ground Task Forces (MAGTF) command elements. The
    24th Marine Regiment headquarters deployed as a Special Purpose MAGTF
    to U.S. Southern Command to support the new Partnership of the Americas
    series of small combined security cooperation exercises in South
    America, while 25th Marine Regiment headquarters led the MAGTF in
    support of the combined/joint exercise Talisman Sabre in Australia with
    more than 1,500 marines from across Marine Forces Reserve. The Division
    also conducted training to assist our friends and allies in foreign
    militaries from Mongolia to the Republic of Georgia. The Division
    continued its ongoing relationship with the Moroccan military during
    combined exercise African Lion. The upcoming year will be another busy
    one for the Division as they will conduct training in Nigeria, Ghana,
    Tanzania, Korea, the Dominican Republic, Honduras, Brazil, Peru,
    Colombia, Curacao, Aruba, Argentina and Bosnia. They will also be
    returning for exercises in Morocco and the Republic of Georgia.
        Fourth Marine Aircraft Wing has provided necessary exercise support
    and pre-deployment training as the active component squadrons continued
    supporting deployments to Iraq and Afghanistan. The Marine Corps'
    premier pre-deployment training exercise, Mojave Viper, received a
    majority of air support from our fixed wing and helicopter squadrons.
    Fourth Marine Aircraft Wing deployed Marine Wing Support Squadron 473
    to run airfield operations and Light Attack Helicopter Squadron 773 (-)
    to support combat operations for Multi-national Forces--West in Iraq.
    Additionally, they deployed a Marine Transport Squadron Detachment with
    the UC-35 Citation Encore in order to bring time-critical lift
    capability to U.S. Central Command.
        In addition to these missions, the Fourth Marine Aircraft Wing has
    participated in several combined, bi-lateral and joint exercises in
    Africa, Asia, and Australia. Support for these exercises not only
    includes supporting U.S. and Marine Corp forces, but also can focus on
    training and supporting our allies, as in African Lion, when our pilots
    trained Moroccan pilots in techniques of air-to-air refueling.
        Fourth Marine Aircraft Wing is an integral partner in the Marine
    Corps aviation transition strategy. Focused on the long-term war
    fighting capability of total force aviation, the initial steps require
    a transfer of certain Reserve component aviation manpower, airframes,
    and support structure to the active component Marine Corps. As a
    result, two Reserve Fighter/Attack-18 squadrons will be placed in cadre
    status and a Reserve Light Attack UH-1N/AH-1W helicopter squadron, a
    Heavy Lift CH-53E helicopter squadron, an Aviation Logistics Squadron,
    and two Marine Aircraft Group Headquarters will be decommissioned.
    Another Heavy Lift CH-53E helicopter squadron will be reduced in size.
    Additionally, as part of the Aviation Transition Strategy, Fourth
    Marine Aircraft Wing has commissioned two Tactical Air Command Center
    Augmentation Units to reinforce the total force in the prosecution of
    the global war on terror. Long term, to complete the aviation
    transition strategy, Fourth Marine Aircraft Wing will be equipped with
    21st century airframes and C2 capabilities.
        Fourth Marine Logistics Group continues to provide the active
    component with highly skilled, dedicated personnel capable of
    delivering sustained tactical logistics support. During the past year,
    Fourth Marine Logistics Group provided more than 1,800 marines and
    sailors from across the spectrum of combat service support for its
    ongoing support of OIF. Also during this past year, Fourth Marine
    Logistics Group demonstrated the true meaning of total force as they
    provided a headquarters for an engineer support battalion comprised of
    marines from their own 6th Engineer Support Battalion combined with
    active component Marines from 7th and 8th Engineer Support Battalions
    and deployed in support of OIF.
        In addition to ground, aviation, and logistic elements, Marine
    Forces Reserve has provided civil affairs capabilities since the start
    of Operation Iraqi Freedom. Air-Naval Gunfire Liaison Detachments from
    Marine Forces Reserve have augmented the supported Marine Air Ground
    Task Forces and adjacent commands with air/ground fires liaison
    elements. Marine Forces Reserve also continues to provide intelligence
    augmentation for Operation Iraqi Freedom, to include human exploitation
    teams, sensor employment teams, and intelligence production teams.
        The trend in recent years toward increased participation of our
    Individual Ready Reserve (IRR) marines continued in fiscal year 2007.
    During the fiscal year, the Marine Corps Mobilization Command (MOBCOM)
    processed 2,500 sets of active duty orders for IRR marines.
    Consequently, the readiness requirements of our IRR marines and their
    families have also increased. We have modified IRR management practices
    accordingly. In fiscal year 2007, the Marine Corps Mobilization Command
    screened 4,000 more IRR marines than in fiscal year 2006, just short of
    11,000 of the 60,000 marines in our IRR population. MOBCOM accomplished
    this by increasing the number of administrative musters conducted at
    locations throughout the United States and, also, by increasing the
    quality of communications between the Marine Corps and members of the
    IRR. Higher quality communications keeps our marines better informed
    and prolongs their connection with each other and our Corps. We believe
    that these longer-term connections will be critical as we truly seek to
    create the continuum of service necessary to support a sustainable
    operational Reserve and our total force through the long war.
        In summary, more than 6 years into the long war, the Marine Corps
    Reserve continues to serve shoulder-to-shoulder with our active
    component counterparts. Operations Enduring Freedom and Iraqi Freedom
    have required continuous activations of Reserve forces. Accordingly,
    your Marine Corps Reserve continues to focus upon the future challenges
    of the total force and corresponding requirements of modernization,
    training and personnel readiness to ensure that the Marine Corps
    Reserve meets and exceeds its obligations within the total force.
        While we continue to support the long war, it is not without a
    cost. Continuing activations and high Reserve operational tempo
    highlights the fact that we have personnel challenges in some areas and
    we are putting additional strain on Reserve equipment.
                                equipment status
        The Marine Corps Reserve, like the active component, faces two
    primary equipping challenges: supporting and sustaining our forward
    deployed forces in the long war while simultaneously resetting and
    modernizing our force to prepare for future challenges.
        Our priorities for supporting and sustaining our deployed forces
    are: first, to provide every marine and sailor in a deploying Reserve
    unit with the latest generation of individual combat and protective
    equipment; second, to procure essential communications equipment;
    third, to procure simulation training devices that provide our marines
    with valuable training to enhance survivability in hostile
    environments; and fourth, to provide adequate funding to our operation
    and maintenance accounts to sustain training and pre-deployment
    operations.
        Our priorities in support of resetting and modernizing the force
    include the following: first, to procure principal end items necessary
    to reestablish on hand equipment to the level dictated by our training
    allowance, which is the amount of equipment needed by each unit to
    conduct home station training; and, second, to procure the equipment
    necessary to enhance our capability to augment and reinforce the active
    component. Since the Marine Corps procures and fields equipment as a
    total force, equipment modernization efforts of the Marine Corps
    Reserve are synchronized with the efforts of the active component.
        As with all we do, our focus is on the individual marine and
    sailor. Our ongoing efforts to equip and train this most valued
    resource have resulted in obtaining the latest generation individual
    combat and protective equipment: M16A4 service rifles, M4 carbines,
    rifle combat optic scopes, improved helmet pad suspension systems,
    enhanced small arms protective insert plates, modular tactical vests,
    and the latest generation AN/PVS-14 Night Vision Devices, to name a
    few. I am pleased to report, as I did last year, that every member of
    Marine Forces Reserve deployed in support of the long war is fully
    equipped with the most current authorized individual combat clothing
    and equipment to include personal protective equipment.
        Deployed Marine Corps unit equipment readiness rates remain high--
    above 90 percent. Ground equipment readiness rates for non-deployed
    Marine Forces Reserve units average 88 percent, based on training
    allowance. the slightly lower equipment readiness posture is primarily
    attributable to home station training allowance equipment shortages
    caused by sustainment requirements of the long war. The Marine Corps
    Reserve equipment investment overseas since 2004 in support of the long
    war is approximately 5 percent of our overall equipment. This
    investment includes various communications, motor transport, engineer,
    and ordnance equipment, as well as several modern weapons systems such
    as the new HIMARS artillery system and the latest generation light
    armored vehicle. This investment greatly adds to the war fighting
    capability of the Total Force while providing minimal impact to our
    home station training requirements. Deliberate planning at the service
    level is currently underway to reset the total force, to include
    resourcing the Reserve equipment investment made to the long war. This
    will allow the Marine Corps Reserve to remain ready, relevant, and
    responsive to the demands of our Corps.
        Reduced supply availability continues to necessitate innovative
    resourcing approaches to ensure Reserve marines can adequately train in
    preparation for deployment, until the effects of supplemental funding
    produce tangible results. Despite ongoing efforts to mitigate
    shortfalls, the inherent latency in procurement timelines and competing
    priorities for resources will continue to challenge the training and
    equipping of Reserve forces for the long war.
        Your continued support of current budget and procurement-related
    initiatives, such as the President's budget submissions, supplemental
    requests, and National Guard and Reserve Equipment Appropriations
    (NGREA), will guarantee our ability to properly equip our individual
    marines and sailors. Marine Corps Reserve equipment requirements are
    registered in each of these as part of the Marine Corps total force
    submissions. Reserve equipment requirements that cannot be timely met
    with these vehicles are identified as the Reserve portion of the
    unfunded priorities list and equipment procurement requirements are
    sometimes resourced by NGREA. It would be impossible for me to
    overstate the value and importance of NGREA to the Marine Corps
    Reserve. We appreciate Congress' continued support of the Marine Corps
    Reserve through NGREA. Since 2002, NGREA has provided more than $200
    million to Marine Forces Reserve for equipment procurements. It is safe
    to say that we couldn't have provided some critical capabilities to our
    Nation without NGREA. Moreover, I want to emphasize this year the value
    of consistent NGREA funding for our Reserve components and
    specifically, the Marine Corps Reserve. In the last 3 years, through
    consistent funding, we have been able to ``close out'' equipment
    purchases--or to buy to our established training allowance--in 32
    different end items. Examples of equipment purchases we have been or
    will be able to close out using fiscal year 2006, fiscal year 2007, and
    fiscal year 2008 NGREA funding are: the Virtual Combat Convoy Trainer;
    the Medium Tactical Vehicle Replacement--Training Systems; the LITENING
    II Targeting Pod; the AN/ARC-210 (V) Multi-Modal Radio system for our
    KC-130 aircraft; the UC-12+ aircraft; and, multiple C2 systems
    components. We've also been able to come close to closing out other
    equipment purchases. If consistent NGREA funding is received in the
    coming year, and if requirements for these and other items of equipment
    do not change, we envision closing out four other equipment purchases
    with fiscal year 2009 funding: the BRITE STAR FLIR; the Tactical Remote
    Sensor System; the Deployable Virtual Training Environment; and, the
    HMMWV Egress Assistance Trainer.
                                   facilities
        Marine Forces Reserve is comprised of 183 sites in 48 States, the
    District of Columbia, and Puerto Rico. These sites are comprised of 32
    owned, and 151 tenant sites. In contrast to active duty installations,
    normally closed to the general public, our Reserve sites are openly
    located within civilian communities. This arrangement requires close
    partnering with State and local entities nationwide. The condition and
    appearance of our facilities may directly influence the American
    people's perception of the Marine Corps, the Armed Forces, and our
    recruitment and retention efforts.
        Marine Forces Reserve Facilities Sustainment, Restoration, and
    Modernization (FSRM) program funding levels continue to address
    immediate maintenance requirements and longer term improvements to our
    older facilities. Sustainment funding has allowed us to maintain our
    current level of facility readiness without further facility
    degradation. Restoration and Modernization (R&M) funding continues to
    be a challenge due to its current $4.5 million programmed funding
    shortfall across the Future Years Defense Plan (FYDP) and an overall
    backlog of $130.2 million created through significant funding
    shortfalls in prior years. Currently, 10 of our 32 owned sites are
    rated C-3 or C-4 under the Marine Corps' facility readiness reporting
    system. Our OSD-mandated objective is to maintain levels of C-2 or
    better. The fiscal year 2009 budget, if approved, will see programmed
    upgrades for eight sites to C-2 or better, with the remaining sites
    programmed to meet C-2 or better by fiscal year 2010. The fiscal year
    2009 budget attempts to bring the R&M program back on track to address
    remaining deficiencies. However, it should be noted that this funding
    does not address the reported backlog created through prior year
    funding shortfalls. As such, we continue to apply internal savings to
    address R&M projects at the end of each fiscal year.
        The programmed R&M funding shortfalls in the current FYDP, when
    combined with lingering R&M requirements carried over from prior fiscal
    years, continue to increase the FSRM backlog exponentially over the
    FYDP. This jeopardizes our ability to meet the C-2 or better rating for
    quality by 2010. The fiscal year 2007 sale of the former Marine Corps
    Reserve Center in San Juan, Puerto Rico, will potentially provide
    funding to address nearly 20 percent of this combined R&M shortfall.
    Further use of Real Property Exchanges (RPX), and other similar laws,
    has been an invaluable tool towards addressing shortfalls and emerging
    requirements. The RPX program extension to 2010 will allow us further
    opportunities to use proceeds from existing older properties to fill
    gaps in minor construction projects for our centers to meet evolving
    needs.
        The Military Construction, Navy Reserve (MCNR) program, including
    Marine Corps Exclusive and Navy-led projects, is addressing critical
    needs for new facilities to replace older buildings and accommodate
    changes in Marine Corps Reserve force structure. The President's
    proposed fiscal year 2009 budget contains $22.8 million for military
    construction and $836,000 in planning and design funding. Congressional
    approval of this budget provides new Marine Corps Reserve Centers in
    Atlanta, Georgia, and at the Naval Air Station Lemoore, California.
    Your continued support for both the MCNR program and a strong FSRM
    program are essential to addressing the aging infrastructure of the
    Marine Corps Reserve. With more than 50 percent of our Reserve Centers
    being more than 40 years old and 35 percent being more than 50 years
    old, support for both MCNR and FSRM cannot be overstated.
        The Base Realignment & Closure (BRAC) 2005 is an area of continuing
    concern due to the limited funding for BRAC military construction
    projects. Unique to the Marine Corps Reserve BRAC program is the
    secondary impact to our Reserve Centers that are part of Army and Navy
    BRAC actions. Of the 25 BRAC actions for the Marine Corps Reserve, 21
    are in conjunction with Army and Navy military construction projects,
    reflecting OSD policies toward shared joint Reserve centers. As a
    result, any funding shortfalls experienced by these two services will
    have a secondary negative effect on the Marine Corps Reserve.
    Escalating prices in the construction industry continue to challenge
    the Reserves in narrowing the gap between funding requirements for
    projects and budgetary allowances. In fiscal year 2007, two of three
    BRAC projects awarded for Marine Forces Reserve required significant
    increases in funding over what was programmed, ranging from $500,000 to
    $3 million over the budgeted amounts. These factors challenge Marine
    Forces Reserve and its designated construction agents, as well as the
    other Reserve components, to award projects and comply with BRAC law
    deadline. The ramifications of this trend are that Marine Forces
    Reserve will have less funding available in later years for any
    overages and be forced to either significantly cut our requirements at
    the cost of facility mission functionality or move funds from other
    required facility programs. Adequate and timely receipt of funding for
    the entire BRAC program, including restoration of the fiscal year 2008
    budget cut no later than fiscal year 2009, is essential to meeting the
    statutory requirements of BRAC 2005. The compounding effect of the
    back-to-back continuing resolutions we have experienced to date, during
    peak BRAC construction years, has heightened the risk that we will not
    meet statutory compliance by September 15, 2011.
        Our Marine Forces Reserve Environmental Program promotes accepted
    stewardship principles as well as compliance with all regulatory
    requirements in support of training both on site and outside the fence
    line. Marine Forces Reserve has initiated a nationwide program to
    reduce waste production and ensure proper disposal at our centers. We
    have also executed several major projects to protect the nation's
    waterways near our drill centers. Continued funding is essential to
    ensure that both emerging environmental requirements are met and
    critical ongoing training continues.
                                    training
        Since 9-11, approximately 99 percent of U.S. Marine Corps Reserve
    units have been activated and 98 percent of those units have deployed
    to the U.S. Central Command area of responsibility in support of
    Operations Enduring Freedom and Iraqi Freedom and the global war on
    terrorism. The collective lessons wrought from their experiences abroad
    have helped improve nearly all facets of our current Reserve component
    training. In this regard, one of the most exciting areas where we are
    continuing to transform the depth and scope of our training is in the
    cutting-edge arena of modeling and simulations technology.
        Rapid advancement in modeling and simulation software, hardware,
    and network technologies are providing ever new and increasingly
    realistic training capabilities. Marine Forces Reserve is training with
    and continuing to field several complex digital video-based training
    systems which literally immerse our Reserve Component Marines into
    ``virtual'' combat environments, complete with the sights, sounds, and
    chaos of today's battlefield environment in any clime or place, day or
    night, spanning the full continuum of warfare from high-intensity
    conventional warfare to low-intensity urban conflict.
        Some of these new training capabilities that we are training with
    and continuing to field to support our Reserve marines stationed at our
    183 training sites located throughout the country include the Indoor
    Simulated Marksmanship Trainer--XP. This interactive audio/video
    weapons simulator provides enhanced marksmanship, weapons employment,
    and tactical decision making training for a variety of small arms. The
    system consists of infantry weapons instrumented with lasers that
    enable Marines to simulate engaging multiple target types.
        Another system that we addressed in lasts year's testimony that
    continues to prove invaluable in the pre-deployment training of our
    tactical drivers is the Virtual Combat Convoy Trainer--Reconfigurable
    Vehicle System. This is an advanced, full-scale vehicle simulator that
    trains Marines in both basic and advanced combat convoy skills using
    variable terrain and roads in a variety of weather, visibility and
    vehicle conditions. The simulator is a mobile trailer configured
    platform that utilizes a HMMWV mock-up, small arms, crew-served
    weapons, 360-degree visual display and after action review/instant
    replay capability. Marine Forces Reserve was the lead agency for
    initial procurement, training, and evaluation of this revolutionary
    training system, which is now being used to train the total force.
        Starting this summer, we will begin fielding the newly developed
    Deployable Virtual Training Environment. This is an advanced, first-
    person, immersive, simulation-based training system, made up of 16
    laptops and peripherals packaged in ruggedized deployable cases. The
    system is capable of emulating and simulating a wide variety of weapons
    systems and generating hi-fidelity, relevant terrain databases in any
    clime or place. It also provides small-unit echelons with the
    opportunity to continuously review and rehearse Command and Control
    procedures and battlefield concepts in a virtual environment. The
    system consists of two components, the Combined Arms Network providing
    integrated first person combat skills and Tactical Decision Simulations
    providing individual, fire team, squad and platoon-level training
    associated with patrolling, ambushes and convoy operations. Additional
    environment features include combat engineer training, small-unit
    tactics training, tactical foreign language training and event-driven,
    ethics-based, decisionmaking training.
        All of these advanced training systems have been rapidly acquired
    and fielded with vital supplemental and NGREA funding. These critical
    funding resources are not only providing a near-term training
    capability in support of combat deployments, but are also providing a
    solid foundation for the transformation of our training environment
    from legacy static training methods to more realistic virtual combat
    training environments that are preparing our Reserve marines and
    sailors to succeed on future battlefields.
                              personnel readiness
        Like the active component, Marine Corps Reserve units primarily
    rely upon a first-term enlisted force. Currently, the Marine Corps
    Reserve continues to recruit and retain quality men and women willing
    to manage commitments to their families, their communities, their
    civilian careers, and their Corps. Despite high operational tempo, the
    morale and patriotic spirit of Reserve marines, their families, and
    employers remains extraordinarily high.
        In fiscal year 2007, the Marine Corps Reserve achieved 100 percent
    of its recruiting goal for non-prior service recruiting (5,287) and
    exceeded its goal for prior service recruiting (3,575). As of April 1,
    2008, we have accessed 1,890 non-prior service and 2,482 prior service
    marines, which reflects 50 percent of our annual mission.
        Our selected Reserve population is comprised of Reserve unit
    marines, active Reserve marines, individual mobilization augmentees,
    and Reserve marines in the training pipeline. An additional 60,000
    marines are included in our Individual Ready Reserve, representing a
    significant pool of trained and experienced prior service manpower.
    Realizing that deployments take a toll on active component marines,
    causing some to transition from active duty because of high personnel
    tempo, we continue to offer the selected Marine Corps Reserve
    Affiliation Involuntary Activation Deferment policy, which was
    instituted in June 2006. This program allows a marine who has recently
    deployed an option for a 2-year deferment from involuntary activation
    if they join a Selected Marine Corps Reserve unit. The intent of the 2-
    year involuntary deferment is to encourage good Marines to participate
    and still maintain breathing room to build a new civilian career.
        I do anticipate greater numbers of Marines from the Reserve
    component will volunteer for full-time active duty with the active
    component throughout fiscal year 2008 as they take advantage of new
    incentives aimed at encouraging marines to return to active duty. These
    incentives support our plan to bolster active component end strength.
    the fact is we need good marines to serve longer, either active or
    Reserve.
        Our focus is to provide an environment that attracts and retains
    dedicated, high performing individuals. For the current year, Reserve
    officer retention has thus far remained above historical norms.
    Enlisted Reserve retention is currently slightly lower than the fiscal
    year 2006/fiscal year 2007 average, and is being monitored very
    closely. We continue to offer several incentives for enlisted Marines
    to stay in the Selected Marine Corps Reserve, which includes increasing
    the initial 3-year re-enlistment bonus from the current $7,500 level to
    the maximum allowable $15,000. I greatly appreciate the increased
    reenlistment incentive provided in the fiscal year 2008 National
    Defense Authorization Act.
        Junior officer recruiting and consequently meeting our Reserve
    company grade requirement remains the most challenging area. At the
    beginning of fiscal year 2007, the Marine Corps modified an existing
    program and implemented two new Reserve officer commissioning programs
    in order to increase the number of company grade officers within
    deploying Reserve units and address our overall shortage of junior
    officers in our Reserve units. Eligibility for the Reserve Enlisted
    Commissioning Program was expanded to qualified Active Duty enlisted
    Marines. The Meritorious Commissioning Program--Reserve was established
    for qualified enlisted marines, Reserve and active, who possess an
    associates degree or equivalent number of semester hours. As of May 1,
    the Officer Candidate Course--Reserve (OCC-R) has proven to be the most
    successful of the three programs. Eighty-four candidates have been
    commissioned second lieutenants in the Marine Corps Reserve. The OCC-R
    focuses on ground-related billets. Priorities of fill for recruitment
    of candidates are tied to our force generation model.
        In the long run, if the Marine Corps Reserve is to remain ready and
    relevant, we must begin to implement necessary changes to the
    superseded cold war reserve model. In particular, we must develop a new
    paradigm that allows our top performing marines to extend their service
    to the total force through a continuum of service. We must continue to
    develop policies and procedures that allow the seamless transition of
    individual reservists on and off of active duty and that would permit
    varying levels of participation by the servicemembers over the course
    of a military career. Current administrative policies routinely raise
    unnecessary obstacles to transitions between military jobs and duty
    status creating barriers to volunteerism. Presently, there are a
    significant number of different types of Reserve service, primarily
    tied to the cold war model of a strategic Reserve. In order to
    successfully transition a specified number of individuals and unit
    capabilities to an operational Reserve, that number of duty statuses
    could and should be reduced.
                                quality of life
        Whether we are taking care of our marines in the desert or families
    back home, quality of life support programs are designed to help all
    marines and their families. Because marines and their families make
    great sacrifices in service to our country, they deserve the very best
    support.
        We are aggressively instituting new Family Readiness Programs,
    revitalizing services, and proactively reaching out to our young
    demographic to ensure our programs and services have transitioned to a
    wartime footing.
        As part of widespread Marine Corps reforms to enhance family
    support, we are placing paid, full-time civilian employees to fill the
    position of Family Readiness Officer at the battalion/squadron level
    and above to support the Commander's family readiness mission. Modern
    communication technologies, procedures and processes are being expanded
    to support family members including spouses, children and parents of
    single marines.
        The Marine Forces Reserve Lifelong Learning Program continues to
    provide educational information to service members, families, retirees,
    and civilian employees. The program is not only beneficial to career
    marines, but also those intending to transition to civilian life. More
    than 1,300 Marine Forces Reserve personnel (active and Reserve) enjoyed
    the benefit of tuition assistance, which paid out more than $2.6
    million and funded more than 4,000 courses during fiscal year 2007.
    Tuition assistance greatly eases the financial burden of education for
    our service members while enabling them to maintain progress toward
    their education goals.
        The Marine Corps' partnership with the Boys and Girls Clubs of
    America (BGCA) and the National Association for Child Care Resources
    and Referral Agencies (NACCRRA) continues to provide a great resource
    for servicemembers and their families in selecting child care, before,
    during, and after a deployment in support of the long war. The Boys and
    Girls Clubs of America provide outstanding programs for our Reserve
    Marines' children between the ages of 6 and 18 after school and on the
    weekends. Under our agreement with BGCA, Reserve families can
    participate in more than 40 programs at no cost. With NACCRRA, we help
    families of our reservists locate affordable child care that is
    comparable to high-quality, on-base, military-operated programs.
    NACCRRA provides child care subsidies at quality child care providers
    for our reservists who are deployed in support of the long war and for
    those active duty Marines who are stationed in regions that are
    geographically separated from military installations. We also partnered
    with the Early Head Start National Resource Center Zero to Three to
    expand services for family members of our reservists who reside in
    isolated and geographically-separated areas.
        We fully recognize the strategic role our families have in mission
    readiness, particularly mobilization preparedness. We prepare our
    families for day-to-day military life and the deployment cycle (pre-
    deployment, deployment, post-deployment, and follow-on) by providing
    educational opportunities at unit family days, pre-deployment briefs,
    return and reunion briefs, post-deployment briefs and through programs
    such as the Key Volunteer Network (KVN) and Lifestyle, Insights,
    Networking, Knowledge, and Skills (L.I.N.K.S.).
        Every Marine Corps Reserve unit throughout the country has a KVN
    program, which is a volunteer-based program that serves as the link
    between the command and family members--providing official
    communication, information, and referrals. The KVN proactively educates
    families on the military lifestyle and benefits, provides answers for
    individual questions and areas of concerns, and enhances the sense of
    community and camaraderie within the unit. L.I.N.K.S. is a training and
    mentoring program designed by Marine spouses to help new spouses thrive
    in the military lifestyle and adapt to challenges--including those
    brought about by deployments. Online and CD-ROM versions of L.I.N.K.S
    make this valuable tool more readily accessible to families of Reserve
    marines who are not located near Marine Corps installations.
        To better prepare our marines and their families for activation,
    Marine Forces Reserve continues to implement an interactive approach
    that provides numerous resources and services throughout the deployment
    cycle. Available resources include, but are not limited to, family-
    related publications, on-line volunteer training opportunities, and a
    family readiness/mobilization support toll free number. Family
    readiness educational materials have been updated to reflect the
    current deployment environment. Specifically, deployment guide
    templates that are easily adapted to be unit-specific were distributed
    to unit commanders and family readiness personnel, as well as Marine
    Corps families, and are currently available on our Web site. Services
    such as pastoral care, Military One Source, and various mental health
    services are readily available to our Reserve marines' families.
        Managed Health Network (MHN) is an OSD-contracted support resource
    that provides surge augmentation counselors for our base counseling
    centers and primary support at sites around the country to address
    catastrophic requirements. This unique program is designed to bring
    counselors on-site at Reserve Training Centers to support all phases of
    the deployment cycle. Marine Forces Reserve has incorporated this
    resource into post-demobilization drill periods, family days, pre-
    deployment briefs, and return and reunion briefs. follow-up services
    are scheduled after marines return from combat at various intervals to
    facilitate on-site individual and group counseling. Additionally, we
    are utilizing these counselors to conduct post-demobilization
    telephonic contact with IRR marines in order to assess their needs and
    connect them to services.
        The Peacetime/Wartime Support Team and the support structure within
    the Inspector-Instructor staffs at our Reserve sites provides families
    of activated and deployed Marines with assistance in developing
    proactive, prevention-oriented steps such as family care plans, powers
    of attorney, family financial planning, and enrollment in the dependent
    eligibility and enrollment reporting system. During their homecoming,
    our Marines who have deployed consistently cite the positive importance
    of family support programs.
        To strengthen family support programs, we will continue to enhance,
    market, and sustain outreach capabilities. We believe current OSD-level
    oversight, sponsorship, and funding of family support programs properly
    correspond to current requirements. We are particularly supportive of
    Military One Source, which provides our reservists and their families
    with an around-the-clock information and referral service via toll-free
    telephone and Internet access on a variety of subjects such as
    parenting, childcare, education, finances, legal issues, elder care,
    health, wellness, deployment, crisis support, and relocation.
        Marines and their families, who sacrifice so much for our Nation's
    defense, should not be asked to sacrifice quality of life. We will
    continue to be a forceful advocate for these programs and services. We
    will continue to evolve and adapt to the changing needs and
    environments in order to ensure that quality support programs and
    services are provided to our Marines and their families.
                   employer support of the guard and reserve
        Marine Forces Reserve continues to be acutely aware of the
    importance of a good relationship between our Reserve marines and their
    employers. We fully support all the initiatives of the Employer Support
    of the Guard and Reserve (ESGR) and have been proactive in providing
    the information to our Reserve marines on the Five Star Employer
    Program, Patriot Award and Secretary of Defense Employer Support
    Freedom Awards, which are tangible ways for us to recognize those
    employers who provide tremendous support to our men and women who go
    into harm's way. I recently directed all of my major subordinate
    commands to appoint a field grade officer to ensure that units have all
    relevant information to take full advantage of ESGR programs. This will
    ensure that the most current information is passed down to Marine
    Reserve units and personnel, and that all units comply with the new
    requirement for annual ESGR training at the company level. Reserve unit
    commanders are strongly encouraged to correspond with Marines'
    employers prior to deployment.
                                   conclusion
        The Marine Corps Reserve continues to be a highly ready, relevant
    and responsive component of the Total Force Marine Corps. As our
    Commandant has stated in the past, ``Our Marines and sailors in combat
    are our number one priority.'' There is no distinction between Active
    or Reserve personnel or units regarding that priority. We fight
    shoulder-to-shoulder with our active component counterparts and our
    Reserve Marines have consistently met every challenge placed before
    them. Your consistent and steadfast support of our marines and their
    families has directly contributed to our successes.
        As I've stated in past testimony, appearing before congressional
    committees and subcommittees is a great opportunity to showcase the
    absolutely outstanding long-term contributions and commitment of this
    patriotic group of citizens we have in the Marine Corps Reserve. It has
    been my honor to serve this great Nation and Corps for the past 38
    years, and although I will be retiring from the Marine Corps in the
    near future, I look forward to continuing serving our great country and
    the Marines and families of the Total Force Marine Corps for many years
    to come. Thank you for your continued support. Semper Fidelis!

        Senator Stevens. Next is Lieutenant General John Bradley,
    Chief of the Air Force Reserve. General.
    STATEMENT OF LIEUTENANT GENERAL JOHN A. BRADLEY, CHIEF,
                AIR FORCE RESERVE
        General Bradley. Senator Stevens, it is a pleasure to be
    here with you again today. Senator Mikulski, thank you for
    being with us as well, ma'am.
        I am very proud to be the Commander of the Air Force
    Reserve, and as you indicated, my last hearing perhaps here. I
    want to thank you and all of the members of this subcommittee
    for the great support you have given us over these years.
        I am very, very proud of my airmen in the Air Force Reserve
    Command, and I do not usually spend a lot of time introducing
    folks, but I do like to brag about my folks. And I want to tell
    you about our special 70,000 airmen we have doing great work
    for us today around the world.
        Senator Mikulski will know. We have a very large air
    refueling unit in her State who do fabulous work for us in many
    areas around this country, providing air refueling support for
    important fighter cap missions and deployments. They do
    missions in the U.S. Central Command Area of Responsibility
    (AOR). They fly injured soldiers and marines and airmen and
    sailors from Bagram Air Base, Afghanistan, back home
    frequently. So they are a great unit.
        I hope perhaps I can talk to Senator Bond later about a
    fabulous A-10 unit in Missouri that deployed to Afghanistan
    last week for their third Afghan deployment in the last 3
    years, which followed in 2003 a 9-month deployment to Iraq.
    They were on the ground in Iraq and flying missions, doing
    close air support for soldiers and marines in Iraq in 2003 for
    9 months. I am very, very proud of that unit in Missouri, just
    as I am many others.
        I have with me today representing more than 55,000 enlisted
    airmen my command chief, Chief Master Sergeant Troy McIntosh,
    with me in this hearing today, sir. Chief McIntosh helps me
    invaluably keep track of how our airmen are doing and tells me
    about the issues about which they are concerned and what help
    they need. He is a great advisor to me and I am honored to get
    to serve with him. Thank you, Chief.
        I also have with me Colonel Eric Overturf, Senator Stevens,
    who is based at Elmendorf Air Force Base, Alaska. He is the
    commander of the 477th Fighter Group which is our associate F-
    22 group flying with the 3rd Fighter Wing at Elmendorf, this
    phenomenal new air superiority fighter, the F-22. I am proud of
    Colonel Overturf and the operations and maintenance folks that
    he has hired to help the 3rd Wing with its important mission in
    Alaska.
        I also have with me Major Karen MacKenzie. Dr. MacKenzie in
    civilian life is a trauma surgeon who lives near Fresno,
    California doing trauma surgery every day. But she volunteered
    for a tour last year and deployed to Al Udeid, Qatar to be on a
    critical care air transport team, which is a team of a doctor
    and a respiratory specialist and a nurse to transport injured
    soldiers, marines, airmen, and sailors, and was involved in an
    alert scramble to Afghanistan following the crash of a Chinook
    helicopter with 22 Army Special Forces soldiers on board. Eight
    were killed in the crash; 14 survived. They were flown to
    Kandahar, Afghanistan, and her team, along with another team
    from Bagram Air Base triaged and took care of those 14 injured
    soldiers, put them on a C-17 within 2 hours and flew them to
    Landstuhl, Germany. She took them to the hospital and all 14 of
    those brave soldiers survived.
        She is a fabulous representative of our medical community
    in the Air Force Reserve. We do 60 percent of the aeromedical
    evacuation for the Air Force in the Air Force Reserve. She is
    one representative of that great community that has saved so
    many lives of those who have been badly injured in Iraq and
    Afghanistan. So I am very proud to have Dr. MacKenzie behind
    me, as well as Colonel Overturf and Chief McIntosh.

                               PREPARED STATEMENT

        I am very proud of all 70,000 airmen I have in the Air
    Force Reserve, the many deployments they do to support this
    Nation and our Air Force.
        And I look forward to your questions, sir.
        [The statement follows:]
            Prepared Statement of Lieutenant General John A. Bradley
        Mr. Chairman, and distinguished members of the Committee, I
    appreciate the opportunity to appear before you today and discuss the
    fiscal year 2009 President's budget request of the Air Force Reserve.
        This year marks the 60th anniversary of the Air Force Reserve. We
    remain an equal partner in the Total Air Force and an integral part of
    our Nation's defense. The Air Force Reserve has provided significant
    contributions during that time, made possible because we remain tier-
    one ready for the Air Force. We have frequently responded to global
    events within 24 hours of notification. For the last 17 of our 60
    years, we have maintained a persistent presence in the USCENTCOM area
    of responsibility. It began with Operation DESERT STORM and we have
    been continually engaged, never leaving the Persian Gulf. During the
    intervening years we again responded to the needs of the Nation after
    the attacks of September 11, 2001, protecting the homeland through
    Operation NOBLE EAGLE and supporting operations abroad in Iraq and
    Afghanistan. The Air Force Reserve also supplied humanitarian relief in
    the wake of natural disasters both home and abroad following
    hurricanes, tsunamis and earthquakes. These efforts are possible
    because we have dedicated, professional, highly trained reservists
    volunteering to participate in these noble causes and the support of
    their families and employers.
        The Air Force Reserve is a strong and steady Total Force partner.
    As operational demands continue, we face challenges that can adversely
    impact our readiness and overall combat capability. We are always alert
    to the need to stay ahead of those challenges so we remain strong
    partners in our country's defense. As an unrivaled wingman, we share
    the same priorities as the Regular Air Force: Win Today's Fight, Take
    Care of Our People, and Prepare for Tomorrow's Challenges.
                               win today's fight
    Air Force Reserve Global War on Terror Contributions
        I am proud to say that your Air Force Reserve continues to play a
    vital role in support of our nation's Global War on Terror (GWOT).
    Side-by-side with our Air Force and Air National Guard partners, we
    continue to support the war effort primarily in a volunteer status.
        Our Reserve mobility community stepped up with large numbers of
    volunteers and is providing essential support to combatant commanders.
    We currently have seventy-four C-17 and C-5 strategic airlift crews on
    long term active duty orders in support of the GWOT. Ten Reserve KC-10
    crews remain on active duty orders supporting the air bridge, aerial
    refueling and other airlift requirements.
        Our Reserve F-16s and A-10s remain engaged in Operation ENDURING
    FREEDOM and Operation IRAQI FREEDOM with regularly scheduled rotations.
    We provide eighteen crews and twelve fighter aircraft to USCENTCOM
    annually for close air support missions.
        With little fanfare, our Special Operations and Combat Search and
    Rescue units continue their support of combat operations. Although
    rarely receiving public recognition for their actions, our personnel
    are heavily engaged on the ground and in the air.
        To date, sixty percent of the aeromedical evacuation sorties have
    been flown by Air Force Reserve crews, providing a lifeline home for
    the Joint warfighter. Since September 11, 2001 we have flown nearly
    5,000 aeromedical evacuation sorties, safely delivering 26,769
    patients: 11,030 litters, 10,955 ambulatory and 4,784 attendants. I
    could not be more proud of these men and women. Their selfless
    dedication and professionalism have saved countless lives and
    dramatically improved the chances of recovery for those injured in the
    line of duty.
    Tier One Ready
        We in the Air Force Reserve pride ourselves on our ability to
    respond to any global crisis or natural disasters immediately or within
    hours. The Selected Reserve is trained to the same standards as active
    duty Airmen for a reason. We are one Air Force engaged in the same
    fight. With a single level of readiness in the Selected Reserve, we are
    able to seamlessly operate side-by-side with the Regular Air Force and
    Air National Guard in the full spectrum of combat operations. As an
    equal partner in day-to-day combat operations, it is critical we remain
    ready, resourced, and relevant.
    Combat Training
        As part of the Total Force Integration initiatives, Air Force
    Reserve Officer Training School was moved to Maxwell AFB, Alabama and
    combined with the Regular Air Force Officer Training School. Recently
    the Air Force initiated several programs to incorporate additional
    combat training for our Airmen. For example, officer training now
    teaches fundamentals of unarmed combat to their officer candidates.
    This is just one part of a 70-hour course of expeditionary skills
    training.
        Basic war fighting skills will be incorporated into Basic Military
    Training for enlisted recruits beginning October 1, 2008. This course
    will be two and a half weeks longer in order to produce more lethal and
    adaptable Airmen with emphasis on weapons training and participation in
    an intense exercise that replicates the deployed environment and the
    challenges it presents.
        The Air Force is developing other training total force
    opportunities such as Common Battlefield Airman Training, and Survival,
    Evasion, Resistance, and Escape training because the battlefield
    continually changes shape and venue, and Airmen need to be able to
    react and survive in any situation.
    Fiscal Year 2008 National Guard and Reserve Equipment Account
        A significant reason for our relevance as a combat force is the
    National Guard and Reserve Equipment Account (NGREA). The items we
    purchase with NGREA are prioritized from the Airmen in the field up to
    the Air Force Reserve Command Headquarters and vetted through the Air
    Staff. The cornerstone is innovation and the foundation is
    capabilities-based and has been for many years. I am grateful for the
    National Guard and Reserve Equipment Account because those
    authorizations enable us to remain relevant to the fight. The Congress
    provided $45 million in NGREA last year, with which we secured critical
    combat capability for our Airmen in the field.
      --C5A Airlift Defensive Systems.--Protects our aircrews and C-5A
            aircraft from Infrared Guided Missiles.
      --C-130 Secure Line of Sight/Beyond Line of Sight capability.--
            Provides clear communication, interoperability and improved
            situational awareness for our C-130 aircrews.
      --C-130 Small Arms Fire Lookout Capability.--Procures troop door with
            large windows for C-130 aircraft to visually scan for threats
            to the aircraft and aircrew.
      --F-16 Upgraded Commercial Fire Control Computer.--Enables use of the
            helmet mounted cueing sight and software improvements for
            continued upgrades to the aircraft.
      --LITENING POD Spiral Upgrades.--Upgrades current targeting system by
            providing improved visual and guidance system.
        This account is critical to the combat capability of the Air Force
    Reserve and the safety of our people. Many of the new capabilities
    resulted in top-of-the-line improvements that are directly tied to
    better Close Air Support for our Soldiers and Marines in both Iraq and
    Afghanistan. These capabilities save lives. There is much more we can
    do if we continue to receive your support.
    Readiness Challenges
        While we maintain sufficient combat readiness to meet our current
    missions, we are accepting risk in a number of critical areas. For
    example, Depot Purchased Equipment Maintenance is budgeted at seventy-
    nine percent. This reduces aircraft availability for training and
    operations. We will continue to work within our budget guidance levels
    to balance this risk and others while accomplishing wartime taskings.
                            take care of our people
    Family Support
        It is a long standing belief the Air Force recruits members but we
    retain families, and that statement is as true today as in the past. As
    we continue playing a large role in prosecuting the GWOT, our members
    and their families are making huge sacrifices. While the Air Force's
    Air Expeditionary Force construct provides predictability for members,
    families and employers, we recognize the impact of the demands of
    operations and are committed to providing services and support to the
    families that support us so well. We continue to place considerable
    emphasis on looking for new, innovative ways to reach our Reserve
    families of deployed members as well as to continue to improve programs
    already in place. 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. New initiatives include
    predeployment, deployment, and post deployment Airmen and family
    wellness programs. Specific areas of improvement include a standardized
    predeployment checklist as well as mandatory, comprehensive
    redeployment services, post-deployment health assessment and
    reassessment, non-clinical counseling, and education on reunion
    challenges that Airmen and their families face.
        In 2007, several surveys were launched to evaluate the state of our
    members and families. Included were the Community Action Information
    Board Community Assessment Survey, with 8,440 Reserve respondents, and
    the Caring for People Airmen's Questionnaire Assessment, which noted
    family as one of the top concerns. We continue to provide information
    and referral services, assistance with financial questions and
    concerns, family support groups, morale calls and video telephone
    access, volunteer opportunities, reunion activities, letter writing
    kits for children, and a myriad of other services.
        The commuting nature of the Air Force Reserve combined with base
    closures and realignments create additional challenges for reservists
    and their families. Unlike the Regular Air Force, many of our Reserve
    members do not live in the local area of their host unit. In many
    cases, the families are scattered over various geographical regions,
    making access to centralized counselors difficult. With the
    transformation to an operational force, mobilizations and the need for
    more volunteerism, we are engaged in addressing several issues that
    have surfaced with this target population to include adjusting to the
    new steady state (more deployments, less predictable intervals and tour
    lengths, etc.), access to affordable child care, and employment
    opportunities. We are pursuing solutions to these problems and will
    continue to until they are resolved.
    Force Shaping in Fiscal Year 2009
        In the 2006 and 2007 President's budget requests, the Air Force
    reduced Total Force end strength by 37,000 full-time equivalents and
    reprogrammed active military, civilian, and reserve end strength funds
    into the modernization and recapitalization accounts. As a result of
    these actions, the Air Force Reserve reduced its end strength from
    74,900 to 67,500. Additionally, BRAC and Total Force Integration
    initiatives impacted nearly twenty percent of our personnel, many of
    whom we transitioned from operating, maintaining, and supporting legacy
    systems to new and emerging missions such as CYBER, Predator, Global
    Hawk, Falconer Air Operations Centers, and Distributed Common Ground
    Systems. Over the past three years the Air Force has made difficult
    choices in respect to its People, Readiness, Infrastructure, and
    Modernization and Procurement accounts. The Air Force is in the process
    of reevaluating its end strength requirements based on new and emerging
    mission types as well as Air Force support for manpower increases
    programmed for the Army and Marine Corps.
    Recruiting and Retention
        We met our recruiting goals for the last seven years thanks to our
    great recruiters and the many authorities and funding the Congress has
    provided such as increased bonus incentives, opening TRICARE Reserve
    Select at the lowest premium to all selected reserve members, and
    expanding the Montgomery G.I. Bill eligibility window from 10 to 14
    years. Our retention targets are also being met. While we continue to
    maintain manning levels to meet mission requirements, we anticipate
    significant recruiting and retention challenges in the near term, and
    potentially the long term, due to base closures and mission
    realignments. BRAC also reviewed the Air Force Reserve's new missions
    and realigned some of the locations. We are not allowed to move our
    Reserve Airmen when we close a base or unit, as is done in the Regular
    Air Force. Reductions and displacement of reservists present
    significant recruiting and retention challenges for the Air Force
    Reserve.
        One new mission area is the stand-up of an F-22 associate unit at
    Elmendorf AFB in Anchorage, Alaska, and Holloman AFB in Alamagordo, New
    Mexico. This mission will have reservists associate with their regular
    component partners on the fifth generation fighter. While we are
    excited about the opportunity, we have had to increase the number of
    recruiters for officer, enlisted and Air Reserve Technician positions
    to overcome the obstacles of this challenging recruiting market.
        We must continue to identify opportunities to attract members
    separating from the Regular Air Force. With a shrinking pool of prior-
    service Air Force members, recruitment and retention of these
    experienced individuals is vital to avoid the costs of training non-
    prior service members. For some of our most critical specialties,
    affiliation and retention bonuses actually provide a greater return on
    investment versus recruiting non-prior service Airmen. Finally, force
    shaping authorities and incentives should be viewed from a Total Force
    perspective to ensure that provisions do not discourage continued
    service in the Reserve components.
                       prepare for tomorrow's challenges
    Air Force Reserve Transformation
        The Air Force Reserve is accepting an increased share in the Total
    Force partnership with accelerated mission growth and associations. We
    continue to combine with our Regular and Air National Guard partners to
    deliver 21st Century capabilities in Global Vigilance, Reach and Power.
        The technological skills and civilian experience of Reserve Airmen
    are ideally suited to expanding the Nation's eye in Global Vigilance.
    To support Air Force dominance in space, the 310th Space Group at
    Schriever AFB, CO expanded to become the 310th Space Wing just last
    month. A further example of our growth in space is the increased
    manpower we are adding to associate with the Regular Air Force's 8th
    Space Warning Squadron at Schiever AFB, and the increase of our own 9th
    Space Operations Squadron at the Joint Space Operations Center at
    Vandenberg AFB, CA. The Air Force Reserve also operates a Global Hawk
    unit and other Intelligence, Surveillance and Reconnaissance systems at
    Beale AFB, CA, as well as Predator units at Nellis AFB, NV. All of
    these reservists contribute to the Nation's ability to gain and
    maintain awareness anywhere in the world, to provide warning and fuse
    data together to route relevant information to Combatant Commanders.
        To extend the arm of Global Reach, we are creating Active
    Associations, where the Air Force Reserve has primary responsibility
    for the aircraft and the Regular Air Force will augment with manpower.
    This will occur with our KC-135s at Seymour Johnson AFB, NC and March
    ARB, CA, and with our C-130s at Pope AFB, NC. The Air Force Reserve
    will cease operating at Selfridge ANGB, MI and move manpower to augment
    the regular component in a classic Associate KC-135 unit at MacDill
    AFB, FL. In the third associate model, an Air Reserve Component (ARC)
    Associate, the Air National Guard is providing manpower to augment our
    Reserve KC-135s at Tinker AFB, OK. Additionally, we will host an Active
    Associate C-130 unit at Peterson AFB, CO, as well as an ARC Associate
    C-130 unit at Niagara Falls, NY, the Nation's first-ever combat
    delivery ARC association. These units will provide responsive military
    capability anywhere on the globe to rapidly supply, position, or
    reposition Joint Forces.
        To increase Global Power projection, we are assuming new missions
    by associating with the regular component in the F-22 at Elmendorf AFB,
    AK and will soon begin standing up an F-22 association at Holloman AFB,
    NM. In another new mission area, we will associate in the F-15E at
    Seymour Johnson AFB, NC. In a mission we are very familiar with, we
    will provide experienced instructors to train the Total Force in the A-
    10 at Davis-Monthan AFB, AZ and extend operational experience in a
    classic A-10 association at Moody AFB, GA. These new and expanded
    missions help increase the Nation's ability to hold at risk or strike
    any target, anywhere in the world, and achieve swift, decisive precise
    effects.
    Commission on the National Guard and Reserves
        The Congressionally directed commission completed an extensive
    review of the Guard and Reserves' role as an operational force. In the
    report the Commission acknowledged that the Air Force Reserve has been
    a leader in developing the force to meet operational requirements while
    maintaining a significant level of strategic capability. The Commission
    recognized the uniqueness of each Service and acknowledged the need to
    develop discretionary authority that provides flexible tools for the
    Service Secretaries to use when meeting requirements. The Department of
    Defense is studying many of the recommendations and part of that review
    will be the impact on the budget if any of the recommendations are
    adopted in fiscal year 2009.
                                    closing
        Mr. Chairman, I take pride in the fact that when our Nation calls
    on the Air Force Reserve, we are trained and ready to go to the fight.
    Everyday we have reservists who are training and deploying around the
    globe in support of our Nation's defense. Our ability to respond is due
    to our focus on readiness. In order to maintain this readiness, we
    budget wisely and ensure we have the proper funding levels to support
    our Airmen and weapon systems.
        On behalf of over 67,500 Air Force Reservists, I appreciate the
    support this committee provides to our readiness and combat capability.
    The Air Force Reserve, as with the other Services, is facing many
    challenges. While we maintain our heritage of providing a strategic
    reserve capability, today and into the future, we are your operational
    warfighting Reserve bringing a lethal, agile, combat hardened and ready
    force to Combatant Commanders in the daily execution of the long war.
    We are proud of the fact that we provide the world's best mutual
    support to the United States Air Force and our joint partners.

        Senator Stevens. Well, thank you very much, and we welcome
    Chief McIntosh and Colonel Overturf. I am proud to have an
    Alaskan here. And, Dr. MacKenzie, thank you very much for
    distinguished service.
        Let me call first on Senator Mikulski.
        Senator Mikulski. Well, thank you, Generals and Admiral. Of
    course, all the wonderful men and women in the Reserves, those
    who were introduced here and those here and around the world,
    we would like to just greet so personally, and we want to thank
    them for their service.

                                   RETENTION

        My concerns are recruitment--not recruitment, but
    retention. I think during this intense time and this intense
    OPTEMPO, you have done a good job with recruiting, but my
    concern is retention when one thinks about just the tempo of
    being a flight surgeon, if a flight surgeon or a chaplain were
    all that you do. Could you just go down what your retention
    rates are and what other kinds of support services,
    particularly either to the troops themselves or to their
    families, that we should be focusing on?
        My concern is that they are very worried about their
    families and both their financial situation and then the stress
    of the kind of deployments that they are being called upon that
    reserves never originally anticipated. Maybe we could just go
    down the line on that.
        General Stultz. Yes, ma'am. The good news is our retention
    rates are very good. Last year in 2007, we achieved 119 percent
    of our goals in retention. The good news about that is
    traditionally we have made our retention goals on the backs of
    our career soldiers who have 10 to 15 years and they are
    working toward a 20-year retirement.
        Where we have struggled has been with our first-termers who
    joined and now they are trying to make a decision on whether
    they are going to continue. In 2007, our first-term
    reenlistment rate was almost 150 percent of goal. It was
    tremendous, which means these young soldiers, just as was
    epitomized here today that joined after 9/11, knowing what they
    were getting into, are staying with us.
        So it is a good news story that we are meeting our
    retention goals and currently this year, we are on par for
    about 110 percent of goal at a time when we increased the
    overall number of our goal by almost 3,000. So we increased the
    total number, and we are still exceeding what our goals are.
        To your question, though, we recruit a soldier. We retain a
    family. If you do not have the families with us, that soldier
    is not going to stay with us. And I think what we have got to
    do--and some of the panel here have already mentioned things
    like the Yellow Ribbon Program, the family support networks. We
    have got to continue to pay more and more attention to taking
    care of families and taking care of soldiers prior to
    deployment, during deployment, and post-deployment. And we
    cannot have this approach which we have a legacy strategic
    system that said we mobilize the soldier. When he comes back
    from Iraq, we take him off orders and send him back home, and
    fine, thank you for your service. We are done with you.
        We know now that we are seeing things like post-traumatic
    stress, traumatic brain injury, those types of wounds that
    manifest themselves 6 months after the soldier has returned,
    those types of injuries that the soldiers do not know they have
    got until they get back. And what we are looking at is instead
    of the traditional approach--I was gone for 22 months. I was
    gone from October 2002 through August 2004. I got ready to come
    home from Iraq and Kuwait, and they said to me, okay, tell us
    if there is something wrong so we can keep you. I am leaving.
    Okay, I get back to this side to my mobilization station, and
    they ask you the same question. Tell us if there is something
    wrong so we can keep you here. I am going home. We have got to
    change that approach. We have got to say, okay, let us get the
    soldier back with their family and then let us take an approach
    after they get home for the next 3 to 6----

                             YELLOW RIBBON PROGRAM

        Senator Mikulski. General, I appreciate that. I know I have
    limited time on my question.
        I would just like to say to my colleagues--and I am sorry
    Senator Inouye is not here and this has also been very helpful
    to the leadership of General Blum. Our Yellow Ribbon Program is
    something I have been advocating and one of the pioneer States
    was Maryland. It is the military reintegration program for when
    either the Guard or the Reserve comes home.
        I think my colleagues would be stunned to know that the
    civilian leadership at the Pentagon did not include it in this
    year's appropriation request. Fortunately, our bipartisan
    leadership has chosen to include it in the supplemental which
    would pay, I think, $65 million and will cover 15 States and a
    down payment on those States that are initiating the program.
        Our concern with the Yellow Ribbon Program is that it is an
    excellent program as far as it goes. But, General, I think what
    you are saying, even that excellent program does not go far
    enough because it is about an immediate reentry program, but if
    anyone has other issues that go on for a period of time, it
    presents challenges.
        And what we heard at a Maryland roundtable--the Governor
    and I--was that for a lot of people, they do not really know
    what they need until they have been home 1 year, that year of
    just getting cleaned up and the noise level going down and all
    of the things that it takes just to reconnect. Has that been
    your experience that we have to think about the Yellow Ribbon
    Program not only as it is, but really what our men and women
    are experiencing?
        General Stultz. Yes, ma'am. We have got to be able to
    provide that soldier and his family the confidence that we are
    going to take care of them for any kind of related illnesses,
    services, or whatever no matter when it manifests itself.
        Senator Mikulski. Well, I know my time is up. But is this
    pretty much in agreement with what you all would say?

                                   RETENTION

        Admiral Cotton. Yes, ma'am. I just want to say retention is
    great for all of us, but it is not just numbers. We call that
    fill. There is also fit. It is the right skill sets. There are
    certain skill sets that are used over and over again. That
    compresses the back-home time. So that is what we have really
    got to work on.
        Thank you to all of you. TRICARE Reserve Select went into
    effect last October 1 for all reservists. So if you are a
    drilling reservist, a selected reservist, a traditional
    reservist, you can buy health care. This is a huge, huge thing
    for our soldiers, sailors, airmen, and marines. And this has
    picked up our retention. So I thank you for that benefit.
        Senator Mikulski. Thank you, Mr. Chairman.
        Senator Stevens. Senator Murray.
        Senator Murray. I think Senator Durbin was here ahead of
    me. He can go ahead. I will wait.
        Senator Stevens. My list shows you came in first. Why do
    you not go ahead?
        Senator Murray. Well, thank you very much, first of all, to
    all of you for all you have done for our country. I really
    appreciate it, and for all the men and women who serve in the
    Guard and Reserve. There are just tremendous tasks that we have
    asked all of them to do, and I want them to know how much we
    appreciate it.

                                  KC-X PROGRAM

        But, General Bradley, let me turn to you first for a
    question because I have really been working hard to better
    understand how the KC-X program was run and to what level each
    branch participated in the selection process. As you are aware,
    this program is the number one procurement effort the Air Force
    has, and the selection process has been touted as the most
    thorough and transparent competition. And I wanted to ask you
    this morning if you could please tell this subcommittee what
    input the Air Force Reserve had on that selection process.
        General Bradley. Senator Murray, the Air Force Reserve had
    no input on that process. As a major command like the other
    major commands, we are not in any way connected to the
    acquisition process.
        Senator Murray. So you were not asked to give any input
    about this procurement process even though the Reserves fly a
    number of these tankers?
        General Bradley. No, ma'am. I was not asked at all. I was
    not involved in any way. We do fly the current old tankers, but
    we are not part of the acquisition and no one talked to me or
    my command in any way about this program.
        Senator Murray. I find that interesting.
        Now, you know, this protest is now before the Government
    Accountability Office (GAO). So I know you cannot comment in
    particular.
        But let me ask you a simpler question rather than something
    about that, and it is one I have asked General Moseley and
    Secretary Wynne. And that is, would you be proud to fly the
    Boeing 767, had that been chosen?
        General Bradley. Of course, ma'am. Every airplane we have
    had over the course of my 41 years in the Air Force I think has
    been a very good, capable aircraft. There are many very capable
    aircraft out there. The Air Force is proud to have any
    aircraft. We would be proud to have any.
        Senator Murray. Thank you. I appreciate that.
        General Bradley. Yes, ma'am.

                               FULL-TIME SUPPORT

        Senator Murray. Let me turn to a broader question. Each one
    of you has a full-time support entity within your organization,
    and with the increased usage of the Reserve component, do you
    feel you have the full-time end strength to fulfill your
    obligations to each of your active duty components'
    requirements? And I would like each one of you to respond.
    General Bradley, we can start with you.
        General Bradley. Senator Murray, we have come down in size
    a little over the last couple of years. We have had a 10
    percent personnel cut to help pay for acquisition programs, the
    same kind of cut that the active Air Force underwent. And what
    we have had to do is evaluate what missions the Air Force needs
    us to do the most and what the least, and we have had to cut
    some things out. We have had to do some reorganization. We have
    cut one flying wing out of our organization, as well as doing a
    lot of restructuring and closing of some smaller units.
        That being said, we have enough people to do everything the
    Air Force wants us to do now. There are more things that they
    would like us to do, if there were more funds. So the Air Force
    has on its unfunded requirements list a personnel increase, if
    they had more funds available, and they have included an Air
    Force Reserve piece in that unfunded request, a growth of
    4,200-plus positions over the course of a few years.
        Senator Murray. An unfunded request. So we need this but we
    do not have the funds?
        General Bradley. Yes, ma'am. There are more things the Air
    Force believes it needs to do for this Nation, and they include
    the Air Force Reserve and the Air National Guard and all of
    those kinds of missions in which they are involved and the
    things they see for the future. They believe with the future we
    are presented and the threats we face, there are some more
    things we could do if we had more people and more funds, but we
    do not have enough funds in the budget for it today.
        Senator Murray. Thank you.
        General Bergman. Good morning, Senator. In the full-time
    support category, the active component Marine Corps for decades
    has provided over 4,000 active component marines to support the
    183 sites of Marine Forces Reserves. Those active component
    marines, literally from the rank of corporal through colonel,
    come to serve with the Reserve component for a 2- to 3-year
    period. They bring with them the current tactics, techniques,
    and procedures that the big Marine Corps is using to go to the
    fight. That usage of those 4,000-plus marines over the course
    of the last several decades has paid off big time for us
    because our units were ready to go to the fight from the
    beginning.
        The better news is that when those active component marines
    return to the big Marine Corps, they come with the knowledge of
    the challenges of the Reserve component when it comes to the
    integration piece and how it all works. We also have about
    2,200 AR, Active Reserve, billets which are our equivalent of
    the full-time support. They are Reserve marines on active duty.
    Historically they did administration type of work. The number
    is about right.
        But what we are looking at is providing two things: number
    one, career tracks for that small of a population, very
    challenging, especially on the enlisted side; but number two,
    providing them tours in the appropriate place. So if they are
    going to be viewed by the active component folks as experts in
    the Reserve component, they had better have served with the
    Reserve component in some way, shape or form. Otherwise, they
    are just another marine who may or may not be able to
    articulate the needs of the Reserve component. So we are
    focusing on restructuring those 2,200 billets to provide,
    number one, the career potential and, two, the expertise that
    is needed across the big Marine Corps in order to understand
    the nuances.
        The best opportunity I believe we have for the future here
    is to provide the continued numbers dollar-wise of ADOS money,
    formerly ADSW, to bring now the new qualified reservist on
    active duty for 2 or 3 years and provide them opportunities as
    they work through their personal continuum of service. Now you
    have an individual, whether it be officer or enlisted, who can
    talk both sides of the equation with a level of articulation
    that everybody needs. So that is the big picture of where we
    stand.
        Senator Murray. Excellent. Thank you.
        Admiral.
        Admiral Cotton. The Navy has enough FTS. Just like the
    Marine Corps, we fully integrate them. We have got about 760
    FTS deployed right now in support of combatant commanders
    getting joint experience. The Commission on National Guard and
    Reserve recommended we continue this integration. FTS stands
    for full-time sailor. We are part of the Navy, not separate
    Active and Reserve.
        And I think the highlight of this right now is the
    commander of Task Force 76 off the coast of Myanmar, or Burma,
    is Rear Admiral Carol Pottinger on board U.S.S. Essex, and she
    is a full-time support admiral and she is fully integrated in
    command of a task force. So this is what Navy has done in the
    integration.
        Senator Murray. Excellent.

                          FULL-TIME SUPPORT STRUCTURE

        General Stultz. I echo what Jack Bergman just said. I think
    in the Army Reserve, two things. One is we have got to reform
    the full-time support structure. We have got to get more
    integration with active components and Reserve soldiers moving
    back and forth between assignments so that we get that
    experience level. And we can take a soldier who is coming
    back--let us say he has been with the 101st at Fort Campbell.
    He has done two tours in Iraq. Maybe he comes back and his next
    tour is in a Reserve unit where he gets some dwell time, but
    also he brings that experience back to us and helps us train
    that unit. In the meantime, I take one of my soldiers and put
    him in the 101st and let him get that experience there. So we
    have got to start getting this continuum of service with
    soldiers moving back and forth.
        In terms of the number, though, we still continue to need
    additional full-time support in our forces. Now, when I have
    talked to the Chief of Staff of the Army, General Casey, I have
    said there are two ways to go about it. One is to give me more
    additional full-time authorizations or give me back the full-
    time support that are in what I call the above the line. They
    are in the DA staff. They are in the joint staff. They are in
    the COCOM's.
        I have got 2,700 full-time support soldiers that are Army
    Reserve that are serving outside of Army Reserve assignments.
    They are supporting the Army staff. They are supporting the
    joint staff. They are supporting a lot of other operations,
    good experience in some cases, but they are coming out of my
    ranks.
        And so we are looking and saying we need to recapture that
    2,700 whether or not it is an increase in our full-time support
    authorization to make up for that or to give them back to me so
    I can put them back into those units where the readiness really
    needs to be.
        We also need more flexibility. This cycle we keep talking
    about--and it gets to what Senator Mikulski was talking about
    with reintegration. As a unit goes through a 5-year cycle that
    we are going to put them through, when they come back from
    theater and they are in year one, I probably need a full-time
    staff that looks like a supply sergeant to get my equipment
    straight and accounted for, maybe a chaplain for reintegration.
    I probably need a trainer to get school seats for soldiers who
    need to go to school, those kinds of things, some admin people
    to get orders straight, get reassignments and promotions
    accounted for.
        But 2 years from then when they are getting ready to deploy
    again, they are about 2 years from deployment, I probably need
    to change the mix of that full-time structure, and maybe I need
    a full-time commander and a full-time first sergeant and a
    full-time operations NCO. And so I think one of the things we
    have got to do is make the system we have got more flexible.
        Senator Murray. And what is the barrier to doing that?
        General Stultz. Part of it is the type of structure we
    have--military technicians as full-time people who we do not
    have the capability to move around like that. And then our own
    systems of where we designate full-time positions and it takes,
    for lack of a better term, an act of Congress almost to get
    that changed. And that is our own bureaucracy. That has nothing
    to do with you. It is our own bureaucracy. We have got to get
    more flexible in the way we do things.
        Senator Murray. Thank you very much.
        Thank you, Mr. Chairman.
        Senator Stevens. Senator Durbin.
        Senator Durbin. Thank you, Senator.

                                 MENTAL HEALTH

        I would like to address an issue which is not talked about
    a lot, but needs to be. Admiral Mullen briefed us recently and
    gave us a very candid briefing about the state of our military
    in terms of problems they are facing, both in continuing to
    serve in theater and after they return. He spoke, I thought, in
    very candid terms and honest terms about the toll that this war
    has taken on many of our great citizen soldiers, as well as
    those in the regular Army and regular branches of the service.
    And he talked to us about the concern he has about how long we
    can continue to ask these men and women to make the sacrifices
    that they are making.
        We recently received a report through the Veterans
    Administration, November 2007. It found that 42.4 percent of
    National Guard and reservists screened by the Department of
    Defense required mental health treatment after service. Many of
    these citizen soldiers do not live close to VA facilities and
    have some challenges there.
        The recent VA data on suicide deaths among returning
    veterans from Operation Iraqi Freedom (OIF) and Operation
    Enduring Freedom (OEF) indicate that Guard and reservists
    account for 53 percent of those suicides. Significantly, only
    one in five had been seen at a VA facility before they took
    their lives.
        When it comes to these issues--heartbreaking issues--of
    divorce, mental illness, and suicide, can you tell me what is
    going on in each of your branches now, having watched this war
    over more than 5 years with repeated deployments, longer
    deployments, strains on individuals and families that they
    might never have contemplated? General Stultz?

                                    SUICIDES

        General Stultz. Yes, sir. It is a big concern of mine.
        Now, we have looked at the suicides. I will tell you that
    our suicide rates in the Army Reserve have not spiked or
    increased. We are averaging about 20 suicides a year. Now, we
    used to report only those suicides that occurred while the
    soldier was on duty. We changed that policy because I said, no,
    when I lose a soldier, I lose a soldier. It does not matter if
    he is on duty or off duty. And it is my responsibility. So we
    have been tracking them for the last 3 years, and we have
    averaged right at around 20.
        We have looked at the suicides and to date we cannot
    correlate anything with the deployment and the suicide rate. A
    lot of my suicides occur among soldiers who have never
    deployed, who are not facing deployment. They just have some
    kind of traumatic events in their life. And so in that
    relationship, I said, I cannot make the correlation yet.
    However----
        Senator Durbin. Excuse me. The 20 is for Army Reserve?
        General Stultz. Yes, sir.
        Now, that being said, just as I spoke with Senator Mikulski
    about, what does concern me is the stress. What I have told my
    soldiers is everybody suffers stress from deployment. Everybody
    does. When I was gone for 22 months and came back and I went
    back to my civilian life at Proctor & Gamble and I was sitting
    in a board room talking about how many sizes of Charmin toilet
    paper do we need on the shelf, I could not take it. I said this
    has nothing to do with what is the reality in the world. That
    is stress. Now, how you deal with that is one thing.
        But what we have got to recognize is every one of our
    soldiers goes through stress, and to me, every one of them
    needs to go through the mental counseling. Do not make it
    voluntary. Make it mandatory that everybody gets screened so
    that there is no stigma attached to it. And you do it 3 to 6
    months after they come back.
        Senator Durbin. That was an excellent suggestion. I heard
    exactly the same thing from returning guardsmen in Illinois
    when they were sent to Fort McCoy in Wisconsin and asked,
    ``Before you go home, do you have any problems?'' The answer
    was, ``Of course not.'' And they did. They just did not want
    to, in any way, be delayed in going home.
        General Stultz. Well, I think the other thing we cannot
    forget is the families and the kids. They suffer stress also.
    They have got to be part of this process.
        I went down to Camp Rockfish last summer, which is one of
    our summer camps we have for children of soldiers that are
    deployed. We have Operation Purple Camps for all services, and
    then we have some Army Reserve camps. And we were talking to
    one of the counselors down there, and he said, you just got to
    understand what is going on in these kids' minds. Two young
    boys sitting there talking to each other and one of them said,
    when my dad comes back, and the other one said, they come back?
    He assumed he had lost his father. We have got to understand
    those kids. We have got to get them reintegrated also. So the
    stress is not just about the soldier. It is about the entire
    family. We have got to address that.
        Senator Durbin. Are you tracking divorce rates as well?
        General Stultz. Not to the extent we probably should, no,
    sir.
        Senator Durbin. Admiral.

                                 MENTAL HEALTH

        Admiral Cotton. I agree with everything Jack just said. We
    have had the same experiences.
        I will add one thing, though. Going as a unit is far
    different than as an individual, and we are doing 1-year
    deployments for these provincial reconstruction teams, 15
    months in some cases, prison guard duty, this kind of stuff. So
    it is tough on an individual family. This is where our total
    Navy has come into play, whether Active or Reserve. We shoot it
    exactly the same way. We used to have Reserve centers. We do
    not have them anymore. They are Navy operational support
    centers and they are manned by Active and Reserve in a State,
    Illinois, for example. And so anybody can get assistance there.
        I have said before that we mobilize well and we fight well.
    We do not do well when sailors come home. We have found that at
    the 3-month, 6-month, maybe as late as the 9-month mark, we
    need a celebration of their service through a returning warrior
    workshop. They go to a nice hotel at about $800 per person or
    couple and celebrate who they are, what they did, receive
    certificates, and are treated to a nice dinner. This is also
    when the onset of the PTSD usually kicks in, like Jack said,
    and this is where you have representatives from the VA, other
    organizations there with phone numbers, Web pages, cards,
    handouts, so we aggressively go after these kind of things. And
    that has really helped here. But we have learned this over
    time. So that is one of the solutions we have.
        Senator Durbin. General Bergman?
        General Bergman. Yes, sir. To echo what John and Jack have
    both said, unit deployment is key. Unit cohesion is key. We as
    the Marine Corps Reserve deploy our units largely as infantry
    battalions or squadrons. So they are together before they go.
    They are together after they come back so that minimization of
    isolation, especially after they return, is a big positive
    factor.
        Plus, we only deploy into theater for 7 months, whether you
    are Active or Reserve in the Marine Corps, because we maintain
    a worldwide base forward presence that a 7-month deployment
    works for us as a service. That helps. But that reservist, of
    course, when they mobilize, is still gone for a year whether
    they are across the street or across the world.
        The critical time after returning in our force generation
    model is that first year to allow them to reintegrate into
    their home life, their business life, but maintain whatever
    level of connection with that Reserve unit while they now
    rebalance their personal life. The positive connection helps.
    We do track that.
        A challenge with tracking some of the folks is from the
    IRR, the Individual Ready Reserve, who come from all over the
    country as individuals and then return--our mobilization
    command tracks that better than we did before because we are
    now aware of the numbers that we have involved. And 16,038
    folks today from the IRR are mobilized, and almost all of those
    are forward deployed.
        Sometimes when a person gets back from deployment, they
    leave a unit. We are providing avenues for if they do not stay
    in touch with us, we are not hesitant to stay in touch with
    them. As marines tend to do, we tend to be a little direct at
    times, and it works because they know in that directness we
    care.
        Senator Durbin. Thank you.
        General Bradley.
        General Bradley. Senator Durbin, my colleagues have given
    you some good, thorough answers with which I would completely
    concur.
        What I would say in addition is we do a lot of deployments
    as units, but we do, in the Air Force, a lot of individual
    deployments. I agree having units together is better and we
    have done a lot of restructuring of the deployments that we do
    to the AOR to gather more of our people from a unit together in
    one place. So we gather hundreds of reservists at one place
    instead of spreading people out more. That is helpful.
        We also, when we bring them home, whether they are
    individuals or units, they immediately go to their families. We
    do not send them to a mobilization center or something. So we
    have a different approach on that. I think, as General Stultz
    mentioned a moment ago, getting people back to their families
    fast helps.
        Also, having unit contact. We put great emphasis in our
    units on commanders and supervisors, first sergeants, senior
    enlisted folks, looking after our people and their families
    before deployment, during deployment, after deployment to make
    sure we stay in touch with these folks and have a handle on
    this.
        There are many things we can do better, but I think we look
    after this fairly well. But we still worry about that stress. I
    would not compare the deployments that my airmen do to those
    that General Bergman's or General Stultz' soldiers and marines
    do due to length. Our deployments are maybe 4 months long or
    sometimes even shorter. Theirs are 7 months, 12 months, very
    lengthy, tough deployments. So no comparison there, I think.
    But there is still stress because my units are doing multiple
    deployments. As I mentioned earlier, many have deployed four
    and five times, shorter tours, but it is a lot of turmoil in
    family and their employment life. So that adds stress.

                                   EMPLOYERS

        Senator Durbin. Let me ask one last brief question. How
    important is it when employers of your members of the Reserve
    are willing to make up the difference in pay for those who are
    activated? Is that important?
        Admiral Cotton. I would say it is huge. We just had a brief
    yesterday from the Assistant Secretary of Defense of Reserve
    Affairs of a study that was just done on this. And I just have
    to compliment the employers of America and what they are doing
    for our Guard and Reserve. We are in a long war. They have
    stuck with them. If anything, I think it is accelerating at
    home. That is a really good sign.
        Senator Durbin. Thank you. I have tried for 5 years to get
    the largest employer of Guard and Reserve, the Federal
    Government, to do this, and I failed. But I will keep trying.
    Thank you.
        I have also submitted a statement that I would like to have
    entered into the record.
        [The statement follows:]
                Prepared Statement of Senator Richard J. Durbin
        Chairman Inouye and Senator Stevens, thank you for your leadership
    in addressing a very important part of our nation's armed services--our
    National Guard and Reserves.
    The Long War
        Over 1.6 million servicemen and servicewomen have now served in
    Iraq or Afghanistan. Over 262,000 have served as Guardsmen and 208,000
    have served as Reservists. We have lost 454 National Guard soldiers in
    Iraq, almost five times as many as were killed in Vietnam.
        The war in Afghanistan has gone on for seven years. It will last
    longer than Vietnam. There still is no end in sight.
        This summer, Illinois will see the largest deployment of its
    National Guard since World War II.
        2,700 Illinois National Guard members will deploy to Afghanistan,
    where they will help train the Afghan National Army and the Afghan
    National Police. For some, the deployment will be their second, third,
    or even fourth during their service.
        These are the outstanding men and women of America. We ask them for
    their service, their strength, their courage and fortitude. They will
    spend a year using their talents to help rebuild Afghanistan.
    Looking Out for Reservists
        Deployed Guardsmen and Reservists don't just leave behind their
    families and their jobs. They often leave behind higher civilian
    salaries. A pay cut hurts any family, but it is especially painful for
    a family that also sees a mother or father deployed to war. I've
    offered legislation requiring employers to cover the salary difference
    for Guardsmen or Reservists called to active duty. I think it's right
    thing to so.
        There are several good proposals for improving conditions for our
    Guardsmen and Reservists. Perhaps the most overdue is Senator Webb's GI
    Bill that improves educational benefits for all members of the
    military, including the Guard and Reserve.
    ``Stop-Loss''
        But it isn't just about the benefits we make available. We need to
    respect the decision to step down from service, when a service member
    decides he or she is ready to move on to the next phase of their lives.
        Today, the Pentagon prevents some from leaving the service even if
    their tour of duty is soon to be completed.
        Defense Secretary Robert Gates issued an order in January 2007 to
    minimize ``stop loss'' for the active and reserve forces. The Army now
    says it will continue this practice well into 2009. At this time last
    year, 8,540 soldiers were serving involuntarily. Today, that number has
    surged by 43 percent.
        We need to end this ``back door draft'' approach--and let these
    brave men and women move on to the next phase of their lives.
    Caring for Reserve Veterans
        I know we're here to talk about those who are serving, but we can't
    ignore the toll this service is taking on those who have served.
        Veterans from Iraq and Afghanistan are coming home with higher
    rates of traumatic brain injuries (TBI), post-traumatic stress disorder
    (PTSD), and depression, among other physical and mental wounds.
        One in five suffers from TBI. One in five suffers from PTSD.
        I introduced a TBI bill last year that was enacted as part of the
    Wounded Warriors title in the fiscal year 2008 Defense Authorization
    Act.
        And we've expanded the VA's polytrauma capabilities to help
    veterans--active duty, Guard, or Reservist--suffering from multiple
    traumas, such as traumatic brain injuries, hearing loss, fractures,
    amputations, burns, and visual impairments.
        These injuries are not always obvious or easy to identify, and once
    they are identified they will require a lifetime of care. But we owe
    our men and women in uniform at least that much. We're starting to see
    what happens when we skimp on diagnosing and treating these wounds.
    Impact to Illinois
        My home state of Illinois is feeling the impact of this war.
        The Illinois Department of Veteran Affairs, led by Tammy Duckworth,
    launched the Illinois Warrior Assistance Program--a first in the nation
    program that will screen returning Illinois National Guard members for
    a traumatic brain injury (TBI). The program also offers TBI screening
    to all Illinois veterans, and a 24-hour toll-free psychological
    helpline for veterans suffering from symptoms associated with Post
    Traumatic Stress Disorder (PTSD).
        The Illinois Army National Guard needs more equipment. It has 61
    percent of the ``dual use'' equipment it needs--equipment that can be
    used at war and at home for defense or disaster response.
        The 2,700 soldiers deploying to Afghanistan this year serve in the
    33rd Infantry Brigade Combat Team, at Urbana, Illinois.
        To support this mission, the 33rd recently received $80 million for
    equipment. But at the same time, more than 30 percent of the Illinois
    National Guard's vehicles are outdated.
    Conclusion
        We need an honest and candid dialogue about the true cost of this
    war--not just the cost of fighting it abroad, but the cost to families,
    employers, and opportunities lost.
        I look forward to learning what more we can do.

        Senator Stevens. Thank you very much.
        Senator Cochran.
        Senator Cochran. Mr. Chairman, thank you and thank all of
    you for being here today to be sure we understand and have the
    facts we need to help support your mission and help assure your
    success in defending the security interests of our country. We
    know this is a tough time and there is a lot of stress and
    questions, unknowns out there in the minds of those under your
    commands. And we appreciate the sensitivity that you have and
    that you have indicated this morning to the challenges to
    families and to the stability of communities in our country. We
    thank you for your service.
        I know Admiral Cotton has this returning warrior program.
    You mentioned that a while ago. I am curious to know if the
    other services have anything similar to that. General Stultz.

                           RETURNING WARRIOR PROGRAMS

        General Stultz. Yes, sir. We have had, for some time, a
    reintegration program. Now, part of the challenge we had was
    the policy from the Secretary of Defense that was put out
    initially that said when a unit returns, for the first 90 days,
    there is a blackout period before they are able to drill again
    to come back together. We just recently got that changed
    because we said, no, we need to get our hands on that soldier
    immediately after they come back so that we can get hands on,
    we can talk. Plus, the soldier wants to get back with his
    comrades. So that was the first step, to get that policy
    changed.
        The next step is this Yellow Ribbon Program which the
    Secretary of Defense and others are now pushing us to say we--
    they recognize that we have got to get a systematic approach
    that is not just you come back and 2 weeks later you are done.
    It is 3 months, 6 months, whatever approach, just as General
    Bergman said, almost a 1-year integration plan. So we are
    starting to put together those types of programs.
        We do have programs like Strong Bonds, which our chaplains
    put on, where we pay for the couples to come together and talk
    about it like a marriage enrichment retreat. We started last
    year a singles program because we had a lot of single soldiers
    that said, what about us, and helping them dealing with
    problems, get reintegrated.
        But we have got to do better at formalizing that and not
    just making it as here is where we can do this in a case-by-
    case basis, but across the force. That is going to take money.
    It is going to take money to pay for, just as John said,
    getting them together in a hotel environment where you can
    bring the family together. It is going to take some money to
    bring in those types of services we need, whether it is mental
    screening or physical screening, or those types. But I think it
    is something we have got to do. If we are going to have an
    operational force, if we are going to be in an age of
    persistent conflict and we are going to call on the reserve
    components as we have to sustain this war, then we have got to
    put those kind of programs in effect.
        Senator Cochran. General Bradley, what about the Air Force?
    What do you have?
        General Bradley. Senator Cochran, sir, we do not have a
    formal program like Admiral Cotton described, but on a unit
    level, we do many things. Different units do this different
    ways, have welcome home ceremonies. They may have a barbecue
    welcoming people back, have their families, et cetera.
    Different units do it different ways.
        We send people out as much as we can. I and other senior
    leaders in the Air Force Reserve try to go out and welcome
    people home off deployments. We like to shake hands when they
    get off the airplane and thank them for their service. And I go
    out as much as I can to visit units and thank people for what
    they do.
        We do not have that kind of formalized program. Perhaps we
    should look at something like that. But each of our wings have
    different ways to introduce them to their families and units
    and thank them for their service, but no formalized program.
        Senator Cochran. General Bergman.
        General Bergman. Yes, sir. Both the Active and Reserve
    components of the Marine Corps have a defined return reunion
    program for the families. It varies after the point where that
    unit demobilizes, and now as the Reserve component, we spread
    out events over that year timeframe because we know for a fact,
    like we joke about in some ways before they leave, if we are
    having a family event right before that unit leaves, those
    folks are not paying attention to what is being briefed. They
    are holding onto their loved one. They know they are leaving.
        When they return, they are still holding onto them because
    they are glad they are back. So we try to make sure that the
    program that is presented meets the immediate needs and keeps
    the door open, so 30 days, 60 days, 90 days down the road, if
    something develops, now they know that they have a place to go
    to get help. That is key.
        Senator Cochran. We appreciate very much your leadership,
    and thank you very much for cooperating with our subcommittee
    and giving us the facts we need to help you and help defend the
    security interests of our country.
        Senator Stevens. Senator Bond.
        Senator Bond. Thanks very much, Senator Stevens.
        I want to say a sincere thank you to the great work that
    you are doing in leading a vitally important part of our
    combined forces. Without the Reserve, we would be in terrible
    condition, and your efforts have made a huge impact.
        I am particularly proud of the Reserve A-10 unit at
    Whiteman Air Force Base which, I believe, has been three times
    to Afghanistan and apparently is preparing to deploy again. I
    would appreciate any comments that you have on that.

                             RESERVE A-10 SQUADRON

        General Bradley. Senator Bond, I was bragging about that
    unit in my opening statement. I am glad you are here because I
    told them I would love to talk to you about it. I am very proud
    of them. In fact, I was honored to be the wing commander of
    that unit almost 20 years ago.
        There is not a better unit in the Air Force Reserve than
    that wing at Whiteman, and they deployed last week to Baghram,
    Afghanistan for the third time. And I am going to visit them at
    the end of this month when I go over to Iraq and Afghanistan.
    And I will be proud to see them. They are fabulous airmen who
    are doing great work for America, doing close air support for
    soldiers and marines, NATO, and other coalition partners there
    in Afghanistan.
        They are indicative of the other airmen we have in the Air
    Force Reserve, but I will tell you they are special. They also
    spent 9 months on the ground and in the air over Iraq from
    March to November 2003. So in 5 years, this is their fourth
    combat deployment, and I am very proud of them. And I will pass
    on your regard to them when I visit.
        Senator Bond. Please do and give them not only our thanks
    and congratulations, but best wishes. Thanks very much.
        General Bradley. Yes, sir, I will. Thank you.
        Senator Bond. Thank you, Senator.
        Senator Durbin. Senator Stevens, if I might just make a
    comment. I would like to acknowledge, if it has not been
    acknowledged, that General Bradley is a few weeks away from
    retirement after more than 41 years of service to our country,
    and thank him personally for all that he has given us.
        General Bradley. Thank you, Senator Durbin, and I have two
    colleagues who are not quite as old as I am who are leaving as
    well. And I am proud to serve with them.
        Senator Durbin. I wish you all the best. Thank you.
        Senator Stevens. Well, thank you very much.
        Senator Mikulski. Senator Stevens, could I also make a
    comment, just a very brief one?
        Senator Stevens. Yes.
        Senator Mikulski. We could talk even more with you,
    particularly in the area of Reserve medical units like the
    Comfort, home-ported in Baltimore.
        But I just want to thank you for your candid, very candid
    presentation here today to really talk about what more--whether
    it is the marines, the Air Force, the Navy, or the Army does. I
    just found the candor and the bluntness in the way you are
    standing up for the reservists to be really refreshing, and I
    wanted to thank you for both your service but really your
    advocacy for the men and women who serve under you.

                            ELMENDORF AIR FORCE BASE

        Senator Stevens. General Bradley, there was an experiment
    really at Elmendorf Air Force Base when you took the Air Force
    Reserve and melded them in with the active duty as far as the
    F-22 is concerned. Now, I understand that experiment is going
    to be followed now at Holloman Air Force Base in New Mexico.
    Would you tell the subcommittee members here what you have done
    and how that improves the whole operation as far as the total
    Air Force is concerned?
        General Bradley. Yes, sir. I would be very glad to.
        What you are talking about at Elmendorf Air Force Base is
    what we in the Air Force refer to as an associate concept where
    we have one set of airplanes that belongs to a particular wing
    and that wing, whether it is Active or Reserve or Guard, owns
    those aircraft. And then we put another organization alongside
    it that associates with it, and they have people who work on
    and fly those aircraft as well. We have done that in Alaska. We
    are hiring maintenance personnel. We are hiring pilots to fly
    our F-22's there.
        And it has been very successful. I saw the active duty wing
    commander, General Tinsley, 2 weeks ago, and he told me he is
    so happy with the way this is working. And his reservists are
    doing tremendous work for him.
        We do this all over the Air Force. Senator Murray is gone,
    but at McChord Air Force Base, Washington, we have a similar
    operation in the C-17.
        We do it in many of the aircraft systems. It provides more
    capability, more people to work on and fly airplanes because
    the airplanes are more capable today than they used to be. And
    we need to keep them in the air more. Just as the airlines like
    to keep airplanes in the air, we need to keep them in the air
    so they can do more work because we have fewer aircraft today.
    So this provides more accessibility of the aircraft to the
    active Air Force and it also provides an experience base of
    guardsmen and reservists who are able to help fly these.
        We have a unit in Senator Durbin's area at Scott Air Force
    Base, Illinois, that does this with distinguished visitor
    airlift and special assigned mission aircraft, Active and
    Reserve working together.
        So at Holloman Air Force Base in New Mexico, as you asked,
    Senator Domenici--I have spoken to him about this. We are going
    to stand up a similar organization at Holloman to the one we
    have at Elmendorf Air Force Base where we will have Air Force
    reservists flying and working on the F-22 right alongside
    active duty airmen who fly and maintain the aircraft.
        It is a great concept. We have been doing it actually in
    some parts of the Air Force Reserve for 40 years in the air
    mobility business. So this association concept works well, and
    we do it whether it is the Reserve associating with the Active
    or Active associating with us. So in different cases, a
    different component may own the aircraft actually and the
    others associate with it. It is a proven concept that works.
        Senator Stevens. Thank you very much.

                         ADDITIONAL COMMITTEE QUESTIONS

        The chairman and I will have some questions we will submit
    to you. I request you respond to them at your convenience.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
            Questions Submitted to Lieutenant General Jack C. Stultz
                Questions Submitted by Senator Daniel K. Inouye
                           yellow ribbon integration
        Question. Gentlemen, the Department is establishing a Yellow Ribbon
    reintegration program for all reserve components. I know that many of
    the reserve components have already been providing reintegration
    programs. What is your component doing to support the reintegration of
    reservists returning from deployment and do you expect your program to
    change significantly with the introduction of the Yellow Ribbon
    program?
        Answer. The Army Reserve currently provides reintegration
    activities to our Soldiers and their Families through the entire
    deployment cycle. Activities include Marriage Enrichment Retreats,
    Single Soldier Retreats, Pre-deployment briefings and homecoming and
    reunion workshops for Family members.
        The Office of the Secretary of Defense Memo dated April 15, 2005 on
    Policy on Involuntary Training Following Demobilization prohibits
    military training for at least 61 days following a deployment. The
    Yellow Ribbon Program will dramatically expand our current
    reintegration activities by allowing us to bring Soldiers on duty
    shortly following deployment along with their Family members
    specifically for reintegration activities. This will help us better
    identify and provide help to our veterans who are experiencing
    difficulties.
        Additionally, our intent is to gather Families at the time of unit
    alert and again at pre-deployment processing to prepare them for
    extended deployments and help identify Families in crisis or those
    requiring additional support. We are developing the curriculum for our
    commands, utilizing medical and community resources, to provide
    counseling and initial intervention for those in need, as well as the
    outlets to help them overcome a myriad of issues based on stress,
    trauma, or Family crisis. While our Soldiers are deployed, Yellow
    Ribbon gives us the ability to invite Family members to the unit, on
    travel orders for one day, approximately 60 days after the start of the
    deployment and again, for one day 60 days prior to their return to
    continue to help the Family with existing or new issues that may arise.
    Once the unit returns home, we will begin the reintegration process by
    conducting three reintegration weekends centrally located to the
    command. The first two reintegration weekends requiring Soldiers and
    inviting Family members to attend will be held regionally and at
    centralized, off-site locations. Contracted professional child care
    will be available to those Soldiers who have small children. The third
    reintegration weekend will be for Soldiers only. All events will focus
    on reintegration back into the Family and community, and help identify
    medical issues that may begin to surface. We are engaging our Combat
    and Operational Stress Teams, the Military Family Life consultants, and
    the U.S. Public Health Service to help provide the expertise and
    classes to accomplish these reintegration events and activities.
        We expect the Army Reserve Yellow Ribbon events to help reduce the
    stress of combat and extended deployment and separation, reduce
    domestic violence, reduce the number of suicides, lessen financial
    difficulties and allow for more timely intervention for those suffering
    from emotional disorder, mild traumatic brain injuries (concussion) and
    post-traumatic stress disorder.
                     army reserve--full time support (fts)
        Question. General Stultz, the Army Reserve has identified a
    requirement of an additional 9,000 full time personnel to support
    training and mobilization activities. The fiscal year 2009 budget does
    not request a significant increase in full time support personnel. Why
    has the Department not supported a significant increase?
        Answer. The Department does not support a significant increase
    because they are currently conducting an extensive study on the Full
    Time Support (FTS) required for an Operational Reserve. In addition,
    the United States Army Reserve is also conducting its own analysis of
    the entire FTS structure.
        Question. And do you believe that the shortage of full time support
    is affecting the operational readiness of the Army Reserve?
        Answer. Yes, today's full-time personnel are major contributors
    across the full spectrum of the United States Army Reserve (USAR)
    operations. Fighting the Global War on Terrorism underscores the vital
    role Full Time Support (FTS) personnel have in preparing units for the
    multitude of missions both at home and abroad. The USAR Army Guard
    Reserve (AGRs) sustain the day-to-day operations of the entire USAR.
    The readiness level of the USAR units is directly tied to its FTS
    program.
        Question. The Army Reserve's full time support personnel (Active
    Guard and Reserve personnel and Military Technicians) currently
    comprise 11.9 percent of its end strength, compared to 34 percent for
    the Air Guard and approximately 17 percent for the other reserve
    components. Only the Army Guard, with 15.9 percent full time support,
    is faced with a similar full time support shortage. A 1998 study, re-
    validated in 2006, supported the addition of 9,200 full time support
    personnel, bringing full time support to 16.8 percent of the Army
    Reserve's endstrength. The Army Reserve argues that even more full time
    support is now justified because of GWOT-related training and
    mobilization requirements. A new study is currently ongoing, with a
    December completion date, to re-evaluate full time support
    requirements.
        Recently, the Senate Armed Services Committee authorized an
    additional 3,300 full time support in their fiscal year 2009 bill. The
    Army Reserve has not yet provided cost estimates for this increase. In
    addition, although the Army Reserve is now meeting its recruiting goals
    after a year or two of lackluster performance, it might still be
    difficult for the Reserve to recruit that number of full time personnel
    in one year.
        General Stultz, the Army Reserve has struggled to achieve its
    recruiting mission in previous years, if given the authority and
    funding to increase your full time support levels in fiscal year 2009,
    how many positions could you fill?
        Answer. At this time the United States Army Reserve (USAR) can fill
    3,000 AGR positions in fiscal year 2009 if given the authorizations.
    Although the USAR has struggled in achieving its Troup Program Unit
    (TPU) end strength, we have successfully and consistently met the AGR
    end strength. As a result, we are confident we could fill the
    additional AGR authorizations.
                                     ______

           Questions Submitted to Lieutenant General John A. Bradley
                Questions Submitted by Senator Daniel K. Inouye
                               force realignments
        Question. General Bradley, the Air Force Reserve has been
    implementing several force structure adjustments as part of the Total
    Force Integration and base closure initiatives. The resulting closures
    and mission realignments have hurt Air Force Reserve retention. Now, as
    an additional cost saving measure, the Air Force is considering closing
    several reserve bases and transferring the units and personnel to
    active duty bases to reduce base overhead costs. How do you think this
    will affect the Air Force Reserve? Are you concerned that this will
    hurt retention levels?
    Background
        The Air Force Reserve is undergoing significant force structure
    adjustments. As part of the Total Force Integration plan, the Reserve
    is working to pool equipment and personnel resources with the active
    Air Force to maintain capabilities at a lower cost by associating a
    reserve unit and active unit with the same set of equipment. At this
    same time, the BRAC Commission realigned Air Force assets at over 100
    facilities, recommending some bases close and other realign equipment
    and personnel. These changes affect 26 of the 37 Reserve locations.
        The Air Force Reserve is very concerned about how these additional
    changes are affecting retention. Reserve forces are not as mobile as
    those of the active force so base closures and mission reassignments
    threaten to hurt personnel retention as many airmen choose not to
    follow their unit to another base or to learn a new skill-set to
    perform their unit's new mission. Since these initiatives began in
    fiscal year 2005, the Air Force Reserve has seen a 2.2 percent decrease
    in retention levels with the largest losses coming from 1st and 2nd
    term personnel.
        Now, just as the Air Force Reserve is more than halfway through
    this wave of restructuring, additional cost saving measures are being
    examined. In an effort to reduce base overhead costs, the Air Force is
    considering eliminating many reserve bases and relocating the unit and
    affiliated personnel to an active duty base. This realignment could
    cause the same retention difficulties created by the Total Force
    Integration and BRAC initiatives because many reservists may chose not
    to uproot their families and leave their civilian jobs to follow their
    unit to a new base.
        General Bradley, when do you expect the Air Force to make a
    decision on whether to go ahead with this restructuring?
        Answer. The fiscal year 2009 President's budget request does not
    include any programmatic closing of additional Air Force Reserve bases
    beyond measures directed by the Congress in the 2005 Base Realignment
    and Closure round. The Air Force is currently deliberating its fiscal
    year 2010-15 Program Objective Memorandum (POM) submission to DOD, and
    as such, looks at many possible options to fund Air Force requirements.
    Most of the options discussed during this process never make it into
    the final submission to DOD. Since these options are pre-decisional it
    would be pre-mature to discuss any of the multiple scenarios that may
    be a part of the POM submission in a constrained fiscal environment.
    But Congress will be notified as soon as the fiscal year 2010 PB is
    final and releasable.
                          yellow ribbon reintegration
        Question. Gentlemen, the Department is establishing a Yellow Ribbon
    reintegration program for all reserve components. I know that many of
    the reserve components have already been providing reintegration
    programs. What is your component doing to support the reintegration of
    reservists returning from deployment and do you expect your program to
    change significantly with the introduction of the Yellow Ribbon
    program?
    Background
        The Yellow Ribbon program is a reintegration program for reservists
    returning from deployment. The program invites service members and
    their families to attend a weekend reintegration seminar at 30, 60, and
    90 days after returning from deployment. It was started as an Army
    Guard program in Minnesota and is currently operational in a dozen
    states. The fiscal year 2008 authorization bill required the Department
    to establish a Yellow Ribbon program for each of the reserve
    components. To date, efforts are still in their infancy and the reserve
    components have not been given clear guidance about how to implement
    the Yellow Ribbon program and how to integrate it with any existing
    reintegration programs. So far, the Army is the only service to require
    military personnel to attend reintegration training, for the other
    components it is either optional or is incorporated into normal weekend
    drill activities.
        Admiral Cotton, General Bergman, and General Bradley, I have been
    told that currently reintegration training is only mandatory for the
    Army, have you considered requiring your service members to attend
    reintegration activities?
        Answer. Given the purpose of the Yellow Ribbon Reintegration
    Program, it is very likely that the required training will be mandatory
    and although optional for family members, will be strongly encouraged.
    High emphasis will be placed on providing our Airmen and their families
    with sufficient information, services, referrals and proactive outreach
    opportunities throughout the deployment cycle. Our mobilization process
    is often not unit based as compared to the Army and therefore our
    deployment distribution varies widely depending on the mission demands.
    Mass reintegration activities may not be our best avenue to help. We
    would also like the opportunity to personalize our efforts. Therefore,
    we are exploring the most efficient, effective, and creative ways to
    take care of our deploying Airmen and their families. We are currently
    exploring the use of telephonic outreach, screening and advocacy
    services by licensed behavioral health clinicians to personally contact
    and follow our deployed Airmen at the 30/60/90 day intervals. At the
    same time, we are taking a hard look at our current policies and
    perceptions to lessen concerns and stigma associated with seeking help.
    Available counseling services will be presented positively and
    communicated in a way that by electing to receive help, the Reservist's
    career will not be jeopardized. We also realize that trust must be
    built before reintegration activities achieve their intended purpose,
    mandatory or otherwise.
                                     ______

           Questions Submitted to Lieutenant General John W. Bergman
                Questions Submitted by Senator Daniel K. Inouye
                             reintegration training
        Question. General Bergman, I have been told that currently
    reintegration training is only mandatory for the Army. Have you
    considered requiring your service members to attend reintegration
    activities?
        Answer. Yes. As we move forward in our planning, we envision
    providing some of these activities at mandatory events, such as drills
    or musters.
                             reserve reintegration
        Question. What is your component doing to support the reintegration
    of reservists returning from deployment and do you expect your program
    to change significantly with the introduction of the Yellow Ribbon
    program?
        Answer. Since deployments commenced in 2003, the Marine Corps
    Reserve has developed and implemented programs to support Reserve
    Marines and their families, from predeployment through reintegration.
    The recent authorization to involuntarily activate Marines from the IRR
    introduced new challenges, and we expanded our embrace to Marines who
    had no experience with the Reserve, families who may have had no
    experience with the Marine Corps at all, and families dispersed far
    from any Marine Corps facility. Throughout the deployment cycle, we
    have experienced tremendous support from local communities and
    volunteer agencies, and see the Yellow Ribbon Program (Joint Deployment
    Support and Reintegration Program) as a tremendous asset in
    coordinating all of the available support. We also view the funding as
    an important component of the program, allowing Marines and their
    families to travel to activities that may have been otherwise
    impractical.
        They JDSRP will open many doors for us, allowing the Marine Corps
    to tap into and share assets with other services, the State National
    Guard Bureaus, and the multitude of support services available through
    state and federal Veterans Administrations. It has defined the
    criticality of supporting Marines and their families throughout the
    four stages of deployment, but we are most aggressively formulating
    plans specifically designed to support the reintegration of our
    returning IRR Marines.
        Current reintegration activities include:
      --Tailored in-theater training for our unit leaders, focusing on
            combat operational stress control (COSC) programs (the symptoms
            and risks of untreated combat stress, how to recognize it, and
            both in-theater and home base resources to assist in its
            treatment).
      --A standardized ``Warrior Transition'' presentation is delivered to
            each unit prior to leaving the theater of operations by the
            unit chaplain or CREDO trained chaplains.
      --A standardized ``Return and Reunion for Marines'' presentation has
            been developed for delivery in theater by Chaplains or other
            qualified personnel. All Marines receive this brief before
            returning home.
      --Upon arrival at the home location, Marines are made aware of the
            supportive services available through the Chaplains, Marine
            Corps Community Services (MCCS), Medical Treatment Facilities
            (MTF's) and Military One Source.
      --To the maximum extent possible, Commanders are advised to allow
            time (through half work days perhaps) for returning Marines to
            ``decompress'' from their battlefield experience.
      --Upon arrival at the home location, a Command Safety brief takes
            place prior to Marines being sent on liberty. This usually
            includes aspects such as standards of conduct, safety, alcohol
            and substance abuse, sexual harassment, suicide prevention,
            stress and anger management, and financial management. Our
            families also receive return and reunion information and
            support to ensure successful homecomings.
      --Managed Health Network (MHN), one of the nation's leading mental
            and substance abuse health care organizations, provides
            counseling specialist(s) to individual units who are remotely
            located and unable to access local services and/or to augment
            local counseling providers. MHN is available to assist with
            pre-deployment briefs, deployment issues and especially return
            and reunion/reintegration issues.
      --Post deployment telephonic contact for IRR Marines from Managed
            Health Network care providers at least once per month for three
            months after return from deployment and periodically for the
            following nine months.
      --IRR administrative screening musters at Marine Corps Reserve sites,
            in large metropolitan areas and at Veterans' Administration
            hospitals which tie Marines into local services and employers
            as well as introduce them to VA and VA services.
        We envision educating our dispersed families not only through web
    based support but through partnering with other service programs such
    as CREDO and Strong Bonds. We see moving beyond educating our Marines
    and families, and are even now working to build stronger relationships
    with employers and educational institutions, to ensure that our Marines
    have support in all aspects of their reintegration.
        While the ``Yellow Ribbon Program'' is still in its infancy, we
    have provided a Reserve Marine representative to the Joint Deployment
    Support and Reintegration Program office and have worked with them
    already on our specific challenges and potential solutions. We
    coordinated most recently for the JDSRP office and the other Service
    Reserve Agencies, at the annual DOD IRR Conference.
                        recruiting and retention bonuses
        Question. General Bergman, to continue recruiting and retaining
    good people despite the high operational tempo, the Marine Corps
    Reserve has tripled bonuses this year from $5 to $15 million. The
    fiscal year 2009 budget requests only $5 million for bonuses. Do you
    believe that is sufficient to maintain your recruiting and retention
    efforts?
        Answer. The fiscal year 2009 incentive dollar figure of $3.6
    million was the original planning figure submitted during the budget
    programming process in the previous years. The fiscal year 2009 budget,
    like the fiscal year 2008 budget, will be adjusted to meet the Selected
    Marine Corps Reserve recruiting and retention requirements. The
    tentative dollar amount for fiscal year 2009 is $15 million, which we
    believe to be sufficient to maintain our recruiting and retention.
                          operational tempo and morale
        Question. How is high operational tempo affecting morale?
        Answer. One of the methods used to gauge the morale of the troops
    is to look at retention and reenlistment rates. Our reenlistment rates
    have held steady over the past few years, indicating Reserve Marines
    are showing a desire to continue their service even during this period
    of high operational tempo.
        Also, we have had over 200 Reserve Marines so far this fiscal year
    request to augment to active duty. Some of this is due to the fact that
    the active component has been authorized to grow to 202,000 and some
    new incentives have been introduced for augmentation. But also, we have
    seen a good number of Marines request to augment to active duty after
    demobilizing because they get a taste of the active duty lifestyle
    while activated and desire to stay active.
        The Marine Corps Reserve continues to recruit and retain quality
    men and women willing to manage commitments to their families, their
    communities and their civilian careers, and their Corps. In fiscal year
    2007, the Marine Corps Reserve achieved 100 percent of its recruiting
    goal for non-prior service recruiting (5,287) and exceeded its goal for
    prior service recruiting (3,575).
        One of the initiatives we have implemented to help prepare Marines
    to serve during periods of high operational tempo, is the Total Force
    Generation Model.
        The implementation of the integrated Total Force Generation Model
    lays out future activation, deployment and dwell schedules for Marine
    units. This predictability allows the individual Reserve Marine to
    strike a balance between family, civilian career and service to
    community as well as country and Corps by being able to confidently
    plan for the future.
                                     ______

               Questions Submitted to Vice Admiral John G. Cotton
                Questions Submitted by Senator Daniel K. Inouye
                                 yellow ribbon
        Question. The Yellow Ribbon program is a reintegration program for
    Reservists returning from deployment. The program invites service
    members and their families to attend a weekend reintegration seminar at
    30, 60, and 90 days after returning from deployment. It was started as
    an Army Guard program in Minnesota and is currently operational in
    several states. The fiscal year 2008 authorization bill required the
    Department to establish a Yellow Ribbon program for each of the Reserve
    Components (RC). The program is being fully established, with OSD (RA)
    as the lead, to assimilate it with any existing reintegration programs.
    So far, the Army is the only service to require military personnel to
    attend reintegration training, for the other components it is either
    optional or is incorporated into normal weekend drill activities.
        Gentlemen, the Department is establishing a Yellow Ribbon
    reintegration program for all RCs. I know that many of the RCs have
    already been providing reintegration programs. What is your component
    doing to support the reintegration of Reservists returning from
    deployment and do you expect your program to change significantly with
    the introduction of the Yellow Ribbon program?
        Answer. Navy Deployment Support Programs were expanded to support
    Individual Augmentations (IAs) from both the RC and Active Component
    (AC), and they provide support through all phases of the Deployment
    Cycle.
        The primary reintegration event for returning mobilized personnel
    is the Returning Warrior Workshop (RWW), a weekend retreat in a non-
    military setting designed to attract spouse participation. The
    participating Sailor and spouse are provided cost orders to attend, and
    it satisfies an RC Sailor's drill obligation. The RWW assists members
    and their families in identifying any immediate or potential issues,
    and provides access to resources to resolve those issues. A key element
    of the program is a dinner honoring the Sailors' service and
    recognizing family members' sacrifices. The desired timeframe to attend
    an RWW event is approximately four to six months after deployment.
    Events are held in a wide variety of geographic locations, enabling
    Sailors and their families to attend. Attendance is voluntary, but
    strongly encouraged.
        The RWW Program has requested and received additional funding, and
    it is undergoing a significant expansion in fiscal year 2008. The
    revised program will meet many of the additional requirements contained
    in the Yellow Ribbon Reintegration Program legislation.
                            reintegration activities
        Question. Admiral Cotton, General Bergman, and General Bradley, I
    have been told that currently reintegration training is only mandatory
    for the Army, have you considered requiring your service members to
    attend reintegration activities?
        Answer. The Returning Warrior Workshop (RWW), a weekend retreat in
    a non-military setting designed to attract spouse participation,
    remains the primary reintegration event for returning mobilized RC
    personnel. Events are held in a wide variety of geographic locations to
    make attendance easier for Sailors and their families. The attending
    Sailor and spouse are provided cost orders to attend, which also
    satisfies the Sailor's drill obligation. The RWW assists members and
    their families in identifying any immediate or potential issues, while
    also providing access to resources to resolve those issues. A key
    element of the program is a dinner honoring the Sailors' service and
    recognizing family members' sacrifices.
        Attendance at an RWW is currently voluntary, but strongly
    encouraged. The RWW Program has requested and received additional
    funding and is undergoing a significant expansion in fiscal year 2008.
    As part of that expansion, we are reviewing alternatives to making the
    program mandatory for Sailors deploying in excess of 180 days. The
    revised program will meet many of the additional requirements contained
    in the Yellow Ribbon Reintegration Program legislation.
                        navy reserve officer recruiting
        Question. Although the Navy Reserve achieved its overall recruiting
    goal in fiscal year 2007 after falling significantly short in fiscal
    year 2006, the Reserve still fell far short of its officer recruiting
    goal. The Navy Reserve fell short of its recruiting goal by 48 percent
    in fiscal year 2007 and 56 percent in fiscal year 2006. In fiscal year
    2008, the Reserve is on track to reach a reduced recruiting goal,
    scaled back to give the recruiting command a realistic target.
        Navy officials attribute the shortfalls to high mobilization rates
    in some Reserve communities and the demographic of officers. Officers
    tend to be older, more likely to be married, have children and have
    better career prospects than many enlisted sailors so those sailors who
    leave the active component, tired of frequent deployments, are unlikely
    to risk frequent Reserve mobilizations.
        In an effort to address the problem, the Navy Reserve increased the
    number of recruiters targeting officers and continues to offer more
    money for officer and medical officer bonuses. Last fall, the Reserve
    increased officer affiliation bonuses. For medical and dental officers
    serving critical wartime specialties, the accession bonus can be as
    much as $75,000 and a monthly stipend of $1,907 while studying in a
    medical residency program. The request for fiscal year 2009 requests
    $14.6 million total for officer bonuses, an increase of $3 million over
    fiscal year 2008 levels.
        Admiral Cotton, in fiscal year 2007, the Navy Reserve fell 48
    percent short of its recruiting goal of 2,000 officers and in fiscal
    year 2008 is recruiting to a reduced goal of 800. What measures are you
    taking to attract and retain more officers?
        Answer. In fiscal year 2007, Navy achieved 52 percent of its
    Reserve Officer recruiting goal. The goal for fiscal year 2008 was set
    at 1,200, as opposed to 800 as stated in the question. We have also
    established upper bands that exceed the goal in several programs to
    allow and encourage overshipping to a level of 2,148. Through the end
    of April, 84 percent of the recruiting goal has been either
    commissioned or selected awaiting commission.
        We are offering several monetary incentives to attract Officers to
    affiliate in the Navy Reserve: a $10,000 affiliation bonus for entry
    into 16 different designators; repayment (up to $50,000) of outstanding
    loans used to obtain certification in Critical Wartime Specialties in
    the Health Professions; special pay of $25,000 per year for Medical
    Corps, Dental Corps, and Nurse Anesthetists and $10,000 per year for
    Medical Service Corps and Nurse Corps; and a monthly stipend of $1,605
    (which will increase to $1,907 on July 1, 2008) for officers in a
    medical residency program or post baccalaureate education program in a
    Critical Wartime Specialty.
        A mobilization deferment was established as a non-monetary
    incentive to encourage Officers leaving active duty to affiliate with
    the Reserves. Those who affiliate within six months of transitioning
    from the Active Component qualify for a two-year deferment from
    involuntary mobilization and those who affiliate within twelve months
    are eligible for a one-year deferment.
        We are making a concerted effort through advertising and other
    initiatives to reach out to Officers before they separate from active
    duty to inform them of opportunities in the Navy Reserve. Initiatives
    include increased advertising on Navy bases and in military newspapers,
    targeted direct mail, and e-mail to the members as well as their
    spouses. We have also encouraged Commanding Officers through the ``Stay
    Navy'' NAVADMIN to regularly discuss Reserve opportunities with their
    wardrooms.
        To ensure continued future success, we have programmed an increase
    in Reserve Officer Recruiters in the field beginning in fiscal year
    2009.
        To improve retention among Selected Reserve officers, we are
    currently conducting analysis to determine which designators may
    benefit from application of a critical skills retention bonus. To
    assist in the retention of skilled medical officers and to encourage
    medical officers to acquire critical wartime subspecialties,
    eligibility for the Medical Special Pay, Loan Repayment, and Stipend
    incentives have been expanded to include current Selected Reservists
    accepted into a residency program.
                         navy reserve officer shortage
        Question. Admiral Cotton, how is the shortage of officers,
    particularly in critical specialties, affecting the readiness of the
    Naval Reserve?
        Answer. For clarification of the first preamble paragraph, the
    following is offered: The Navy fell short of its Reserve Officer
    recruiting goal by 48 percent in fiscal year 2007 and 56 percent in
    fiscal year 2006. In fiscal year 2008, the Navy is on track to reach a
    reduced Reserve Officer recruiting goal to meet end strength
    requirements.
        On a percentage basis, the top three specialties mobilized to date
    are Civil Engineers, Supply Corps, and SEALs. Although inventory is
    below requirements in these communities, the Navy Reserve is able to
    meet current mobilization requirements in all of these specialties,
    therefore maintaining required readiness.
        We are encouraged by the success of this year's recruiting efforts.
    Through April, we are exceeding last year's attainment in all three
    specialties, in both real numbers and percentage of goal attained. To
    support affiliation, Officers in these specialties receive the maximum
    Reserve affiliation bonuses allowed by law, and Veterans transitioning
    from Active Component to Reserve Component within six months after
    their end of obligated active service are provided a two-year deferment
    from mobilization to allow establishment of their civilian careers. A
    retention bonus will be funded for RC Officers as resources are
    available. The retention bonus will target Junior Officers in
    specialties that are determined to be limited supply/high demand by
    Officer Community Managers.
                                 National Guard

    STATEMENT OF LIEUTENANT GENERAL H STEVEN BLUM, CHIEF,
                NATIONAL GUARD BUREAU
        Senator Stevens. We are now going to move on to the next
    panel. We do thank you for your service. Again, the three of
    you are retiring as young men. I have recognized that. You
    should follow the advice of my first father-in-law who said
    only in the English language does the word ``retire'' mean
    other than go to bed. So I expect you to have full careers
    after you leave this job. We might even welcome you up here.
    You ought to think about it.
        Thank you very much.
        We will now ask General Blum, General Vaughn, and General
    McKinley to come forward to testify concerning the National
    Guard Bureau.
        Thank you very much. We will now to turn to panel two. Our
    witnesses are Lieutenant General H Steven Blum, Chief of the
    National Guard Bureau, and Lieutenant General Clyde A. Vaughn,
    the Army National Guard Director, and Lieutenant General Craig
    R. McKinley, the Director of the Air National Guard.
        Gentlemen, as we indicated, your statements will be
    included in the record in full. We appreciate if you would make
    your statements or whatever presentations you wish to make to
    the subcommittee. We will first call on General Blum.
        General Blum. Ranking Member Stevens and distinguished
    members of the subcommittee, it is an honor and privilege to be
    before you here today with my two colleagues, General McKinley
    and General Vaughn, my right hand and left hand when it comes
    to the Army and the Air Guard. The leadership of the National
    Guard Bureau is here today, and we brought our senior enlisted
    leaders to talk to you about the readiness of your National
    Guard and answer any concerns or questions you might have.
        At this time, I would ask General Vaughn to introduce his
    senior enlisted advisor and a guest, please.
        Senator Stevens. General.
    STATEMENT OF LIEUTENANT GENERAL CLYDE A. VAUGHN,
                DIRECTOR, ARMY NATIONAL GUARD
    ACCOMPANIED BY SERGEANT MAJOR JOHN GIPE, ARMY NATIONAL GUARD

        General Vaughn. Senator Stevens, distinguished members,
    thank you very much. It is quite an honor to be here.
        We have an enormously strong Army National Guard. We
    appreciate everything that this subcommittee has done. We just
    could not have come close and stayed here and be in the
    position we are at today. A couple years ago, it was an
    entirely different story. And we have a lot to appreciate from
    this subcommittee.
        I would like to introduce the command sergeant major of the
    Army National Guard, all 358,000 of them. Sergeant Major John
    Gipe.
        Sergeant Gipe. Thank you, sir. Mr. Chairman, it is my
    distinct honor here today to introduce two outstanding young
    Americans from Ames, Iowa, Specialist Jay Winkowski and his
    wife of 9 months, Lisa. Specialist Winkowski mobilized with the
    Iowa Army National Guard in October 2005 with Charlie Company,
    1st Battalion, 133rd Infantry for a deployment to Iraq. They
    arrived in Iraq in March 2006 at Al Asad Air Base in Al Anbar
    Province where he served for 16 months.
        Specialist Winkowski's duties while he was deployed was as
    the battalion commander's driver and communications specialist.
    While deployed, he was honored with being named the battalion
    soldier of the quarter and the soldier of the quarter for Al
    Asad Air Base. He also earned the combat infantryman's badge
    for direct combat action against the enemy.
        When he returned home in August 2007, after being deployed
    for 22 months, he attended the warrior leaders course where he
    graduated as a distinguished graduate.
        It is a great honor to introduce these two fine,
    outstanding young Americans to you. Thank you, sir.
        Senator Stevens. We welcome you and your new bride. Thank
    you.
        General Blum. Similarly, I would like General McKinley to
    have the same opportunity on the Air Guard side.
    STATEMENT OF LIEUTENANT GENERAL CRAIG R. McKINLEY,
                DIRECTOR, AIR NATIONAL GUARD
        General McKinley. Thanks, General Blum.
        It is a pleasure, Senator Stevens, to be with you and your
    subcommittee today representing the great men and women who
    make up the Air National Guard. It is also, indeed a privilege
    for me to introduce my command chief master sergeant. Chief
    Smith from Ohio has served the Air National Guard as its senior
    enlisted advisor for the past 4 years, and he will retire at
    the end of this year. It has been a great honor and privilege
    for me to serve with Chief Smith, and I would like him to stand
    and introduce our special guest.
        Chief Smith. Thank you, sir.
        Mr. Chairman and subcommittee, I would like to introduce to
    you Senior Master Sergeant Donna Goodno. She is from San Diego,
    California. She is a mission support flight superintendent at
    the 147th Combat Communications Squadron in San Diego,
    California. She has three deployments to Iraq, to her credit,
    many great accomplishments that I will not go into while she
    deployed. But because of those accomplishments on her
    deployments, she has recently been selected and named as the
    outstanding senior non-commissioned officer for the entire Air
    National Guard. So it is my honor and pleasure to present to
    you our great American, Senior Master Sergeant Donna Goodno.
        General Blum. If I could, let me add because I think you
    understate her capabilities. When all of the general officers
    could not find their way to get an instrument landing system
    into Kabul, Afghanistan, she found one. When we deployed her to
    Iraq, she immediately identified a systemic problem in the
    communications security that had been missed by everybody that
    had been over there, and she got it corrected very quietly and
    quickly. She is outstanding in every measurable way.
        Donna, we are proud of you.
        Senator Stevens. Sergeant Major, we congratulate and thank
    you for your service.
        General Blum. Senator Stevens, members of the subcommittee,
    when it comes to readiness of your National Guard, it is all
    about having three things. This subcommittee knows it well. You
    have to have people. You have to have the part-time people that
    you need, the citizen soldiers and airmen, but you heard our
    reserve counterparts tell you say that you must have the full-
    time cadre to make it work.
        And the reason the Air National Guard works and the reason
    the Air Force Reserve works so well is that they have that
    cadre. They were used as an operational reserve starting 30
    years ago. Their readiness is superb. They can go out the door
    in 72 hours any place on the planet. We need to follow that
    same kind of model now that we are asking General Vaughn and
    the Army Guard to have basically that same kind of readiness
    standard to meet.

                                   PERSONNEL

        Full-time manning is a big issue and part-time manning,
    having enough soldiers and enough airmen in the ranks that are
    fully trained and enough airmen and soldiers over strength so
    that your training pipeline does not count against you for
    readiness, in other words, so that everybody in the unit is
    fully trained and ready and those that need to go to school are
    held in school account over and above what your unit
    requirement is what we need.

                                   EQUIPMENT

        Second, you need equipment. Everybody in this subcommittee
    knows about that, and thank God for the National Guard and
    Reserve equipment account because of that and because of the
    staunch support of Congress and the interest of Congress and
    now the commitment, serious commitment, on the part of the
    Secretary of Defense and the service secretaries and the chiefs
    of staff of the Army and the Air Force, every single day our
    equipment condition improves. And so the status that I
    presented to you last year is much better today than it was
    last year, and next year it will even be better
        Again, that is because of your continued support for the
    National Guard and Reserve equipment account. When that money
    is authorized and appropriated, we are able to place those
    dollars exactly against buying readiness, nothing but
    readiness. And that readiness is to be able to respond in the
    ZIP code right where your constituents live and raise their
    families. So that is very important.

                                    TRAINING

        The third thing is training. We must have the resources to
    train the force so that we do not have to waste time, when
    these forces are separated from their families and from their
    businesses, to get training they should have received before
    they were called up for the service of this Nation.

                               PREPARED STATEMENT

        So with that, Mr. Chairman and members of the subcommittee,
    we await your questions.
        [The statement follows:]
             Prepared Statement of Lieutenant General H Steven Blum
                      introduction and executive overview
         lieutenant general h steven blum, chief, national guard bureau
        In the 371-year history of our National Guard, the year 2007 will
    no doubt be remembered as one of historic proportions. We are members
    of a National Guard in the midst of significant evolution.
        We have become an operational force, fighting side by side with our
    active duty partners, working hard to win the long war against
    terrorism that began some six and half years ago. While we are an
    essential force multiplier in the overseas warfight, we also remain
    focused on and connected to our constitutional roots as the organized
    militia of the states, prepared to rapidly respond domestically under
    the command of our nation's Governors whenever and wherever we are
    needed in the 54 states and territories.
        The President, Congress, the Secretary of Defense, the Secretaries
    of the Army and Air Force, the Governors and the Adjutants General all
    agree: The country needs a National Guard that is manned, resourced,
    ready, and structured to meet the security challenges of the 21st
    century.
                                   resources
        Our greatest resources are our Citizen-Soldiers and Airmen. Today,
    these brave men and women are the most professional, most experienced,
    most capable, and most relied upon that our National Guard has ever had
    in its ranks. Hundreds of thousands of our Soldiers and Airmen have
    deployed to the warfight--many more than once. At one point in this
    war, National Guard members made up about half of the ground combat
    forces in Iraq.
        Even in the face of increased deployments, shorter dwell times, and
    extended separations from families and civilian employers, we are
    retaining members of the National Guard at extraordinary rates. Our
    recruiting numbers are equally impressive. Right now, the Army and Air
    National Guard are contributing to the overseas warfight in staggering
    numbers approaching 513,500 (309,786 Army and 203,700 Air)
    mobilizations as of December 31, 2007.
        Parallel to our support of the overseas warfight is our support of
    the nation's Governors as the first military responders to incidents
    and disasters, whether natural or man-made. Each day, an average of 17
    Governors call on their National Guard for everything from weather
    related assistance to suspected anthrax contamination. The National
    Guard does all of this while remaining an all-volunteer force.
        These young men and women who have volunteered to serve are a
    testament to what it means to answer the call to something bigger than
    ourselves. We must continue to work hard to recruit and retain them;
    they are the future of the National Guard and the future of America.
                                   readiness
        When looking at the readiness levels of the National Guard, it is
    important to consider two of the core elements of readiness: equipment
    and personnel.
    Equipment
        Our objective for the Army and Air National Guard is to have modern
    equipment on a par with that of the Title 10 forces. Make no mistake--
    our deploying Citizen-Soldiers and Airmen have the equipment they need
    to deploy overseas, and it is the same equipment our active duty
    Soldiers and Airmen take with them to the warfight.
        However, over a period of years, the domestic levels of equipment
    available to Governors have fallen to unacceptable levels. For example,
    in 2006, the Army National Guard had about 40 percent of its equipment
    available domestically. As of September 30, 2007, that number is about
    61 percent. By the end of 2009, it will be close to 70 percent; and by
    2013, it will be 77 percent. This is just one illustration of the
    unprecedented support and commitment Congress and the Department of
    Defense has given this issue.
        While the Air National Guard has most of its required equipment,
    the primary challenge is modernizing the aging fleet. Continuing Air
    Force and Congressional support will be important as we move to meet
    the Air National Guard equipment challenges ahead. Last year, Congress
    appropriated an additional $800 million for the National Guard and
    Reserve Equipment Account. This support is critical to the National
    Guard Soldiers and Airmen--who are serving a nation at war.
    Personnel
        Equally essential to our readiness is having the people necessary
    to accomplish our missions, and America's National Guard needs more
    people. The President's fiscal year 2009 budget asks Congress to
    increase the Army National Guard's end-strength authorization from
    351,300 to 352,600. That request also seeks additional full-time
    support.
        Most of our National Guard Soldiers and Airmen have full-time
    civilian careers and devote a minimum of 39 days each year to military
    training. A far smaller number of full-time active National Guard and
    Reserve technicians are integral to the readiness of the part-time
    force. They perform the administrative, maintenance, readiness and
    training preparation essential to ensuring productive time spent by the
    part-time force as they participate in weekend drills and annual
    training.
                                   structure
        On January 28, 2008, the President signed into law the National
    Defense Authorization Act (NDAA) of 2008. This law contains the most
    significant and sweeping reforms in the administration and organization
    of the National Guard Bureau, and indeed the National Guard itself,
    since the National Defense Act of 1916.
        Of significance, the 2008 NDAA designates the Chief of the National
    Guard Bureau as the principal advisor to the Secretary of Defense,
    through the Chairman of the Joint Chiefs of Staff, on matters involving
    non-federalized National Guard forces, and on other matters as
    determined by the Secretary of Defense. The Chief of the National Guard
    Bureau will continue to serve as principal advisor to the Secretaries
    and Chiefs of Staff of the Army and Air Force on the essential role of
    the National Guard as a reserve component of each of these services.
    The law also designates the National Guard Bureau as a joint activity
    of the Department of Defense.
        These and other reforms contained in the 2008 NDAA serve to
    strengthen the role of the National Guard within the Department of
    Defense to meet our growing responsibilities, at home and abroad.
                           state partnership program
        The National Guard's State Partnership Program, establishes
    partnerships between foreign countries and American states and is an
    important contribution to the Department of Defense's security
    cooperation programs conducted by the Combatant Commanders.
        This program was created in 1993 to assist the United States
    European Command's engagement with defense and military establishments
    of former Warsaw Pact nations after the fall of the Berlin Wall. The
    State Partnership Program fosters long-term, mutually beneficial and
    enduring relationships between states and America's friends and allies
    around the globe. National Guard Soldiers and Airmen apply both
    military and civilian skills to support defense reform and military
    transformation, promote democracy, encourage economic development, and
    further regional cooperation and stability.
        The State Partnership Program currently has 58 state partnerships
    throughout the world focused on military-to-military, military-to-
    civilian and civil security exchanges with United States security
    partner nations. This high value program will continue to grow in both
    numbers of partner nations and strategic importance to the Combatant
    Commanders.

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                                   the future
        The National Guard remains focused on operational readiness to
    answer the calls of our Governors and the President in doing our part
    to secure America's future. As the nation and our world change, the
    impacts on our force will be significant. The warfight overseas and our
    response to crises here at home are but two important areas of our
    reach. We will continue to invest in our family programs, our youth-
    based programs such as ChalleNGe, our counterdrug programs and many
    others.
        As Assistant Secretary of Defense for Reserve Affairs Thomas Hall
    recently noted, ``Today's National Guard members are the continuation
    of the Minuteman spirit that defended our citizens and way of life.
    National Guard members have earned the respect of their fellow
    Americans by performing above and beyond the call of duty.''
        With the 2008 NDAA, Congress gave the National Guard new
    responsibilities and clarified roles. This unity of effort will
    continue to solidify our foundation for the next 371 years of National
    Guard excellence. We will remain ``Always Ready, Always There.''
        The following is a full report on our recent accomplishments and an
    explanation of our requirements for fiscal year 2009.
     lieutenant general clyde a. vaughn, vice chief, national guard bureau
                       and director, army national guard
                           message from the director
        The Army National Guard (ARNG) continued to step up to new
    challenges as well as confront the ongoing realities of persistent
    global conflict. As fast as units returned home from Iraq and
    Afghanistan, new ones were mobilized, trained and deployed overseas--
    some for their second or third such deployments.
        The Army National Guard also defends American borders. Under
    Presidential mandate, Operation Jump Start continued along our nation's
    southwest border. There we worked with U.S. Customs and Border
    Protection to stop illegal immigrants and drug traffickers. Army
    National Guard Soldiers responded to the numerous natural disasters and
    emergencies created by blizzards, floods, tornadoes, hurricanes and
    wildfires.
        In addition to the above accomplishments, we continued our
    transformation to a modular design. Doing so allows the Army National
    Guard to remain an important force in the nation's emergency
    preparedness network with missions both at home and abroad.
        We had an admirable track record of successes in 2007. In
    particular, our continued achievements in recruiting and retention have
    been commendable. Our recruiting and retention efforts are keeping our
    organization strong, and are handing the future of our force to a new
    generation of determined and capable leaders.
        The Army National Guard understands the human price of freedom and
    national security. By maintaining and improving the Army National
    Guard's full potential, we honor the Soldiers who have paid the
    ultimate price. We have redoubled our efforts to provide our units with
    equipment needed to replace that left behind from overseas deployments,
    and lost due to damage or end of serviceable use. With the aid of
    Congressional funding and a new Memorandum of Understanding with the
    Army, we have made considerable headway in rebalancing, resetting and
    re-equipping our force for the future.
        In January 2007, the Secretary of Defense directed that Army
    National Guard units be scheduled for mobilizations of no more than 12
    months. To maximize the availability of National Guard troops to
    Combatant Commanders, we must maximize and certify home state
    (regional) pre-mobilization training.
        The Army Chief of Staff has directed that the Adjutants General
    have certification authority. This will reduce training time away from
    the home state or territory and increase ``boots on the ground'' time.
    We look forward to the full implementation of the Army Chief of Staff's
    policy.
        The following pages summarize the Army National Guard's key
    programs and operations during fiscal year 2007, highlighting
    organizational and transformational changes and outlining requirements
    and goals for the future.
                                   readiness
        The U.S. Army uses Army National Guard units as an operational
    force. Units mobilized and deployed for support during the era of
    persistent conflict have maintained high levels of readiness. High
    readiness levels translate to successful missions.
        With lower-than-historical averages of equipment availability,
    increased mobilizations and deployments, and heavy personnel demands
    continued in fiscal year 2007. Despite these difficulties, the Army
    National Guard met all mission requirements and continued to support
    military actions abroad.
        Our ability to respond reflects the value of the National Guard.
    Since September 11, 2001, the Army National Guard has deployed Soldiers
    as follows:

             ARMY NATIONAL GUARD--A TRADITION OF SERVICE TO AMERICA
    ------------------------------------------------------------------------
                                                 Title 10      Title 10 and
                                                  Orders         Title 32
    ------------------------------------------------------------------------
    Total ARNG Mobilized Since 9/11.........         309,786         401,840
                                             -------------------------------
    Operation or Event                          Service in     Serivce since
                                                   2007          9/11/2001
                                             -------------------------------
    Operation Iraqi Freedom.................          34,947         172,988
    Operation Enduring Freedom (Afghanistan)           5,951          24,109
    Operaion Noble Eagle....................             164          35,327
    ------------------------------------------------------------------------

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    Full-Time Support
        Full-time support personnel are vital to the full spectrum of Army
    National Guard operations. Meeting readiness needs, especially in an
    era of persistent conflict, underscores the vital role of our full-time
    support personnel.
        Our previously validated Army National Guard full-time support
    requirement is 84,800 (Technician: 42,329, active Guard Reserve:
    42,471). These authorizations are based on the perception of the Army
    National Guard as a strategic reserve.

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    Transformation through Modular Force Conversion and Rebalancing
        As part of the Army's continuing modular conversion, the Army
    National Guard is restructuring to create forces that are more
    independent and interchangeable (modular). Brigade Combat Teams are
    structured and manned identically to those in the active Army. Because
    of this, they can be combined with other Brigade Combat Teams or
    elements of the joint force, facilitating integration and
    compatibility.
        The Army National Guard has transformed over 1,500 operating force
    units to these new designs. An operating force represents units
    specifically organized to engage in combat and provide service support.
    At the current pace, the Army National Guard will successfully convert
    more than 1,300 additional units to the new modular designs by the end
    of fiscal year 2008.
        DID YOU KNOW?
        The Army is transforming (through Modular Force Conversion) from a
    division-centric force (18,000 Soldiers) to a more flexible brigade-
    centric force (4,000 Soldiers) and is restructuring its organizations
    to create forces that are more stand-alone and alike (modular) while
    enhancing their full-spectrum capabilities.
        The Army National Guard's transformation into modular formations
    gives us the ability to function as an interchangeable operational
    force. This effort impacts Army National Guard units across all 54
    states and territories.
    Lower-Than-Historical Levels of Available Equipment Affects Rebalancing
        The rebalancing plan also ensures that Army National Guard units--
    many under-equipped after leaving deployed equipment behind for follow-
    on units--receive replacements equal to their active duty counterparts.
    While the Army National Guard continues to receive more National Guard
    and Reserve Equipment Appropriation funding, equipping levels are still
    lower than historical levels because of transformation and persistent
    conflict requirements. The average non-deployed unit has about 61
    percent of authorized equipment needed to conduct training, handle
    future deployments and respond to domestic missions.
        By subtracting unacceptable/non-deployable substitute items, the
    equipment available falls to an even lower level. The fiscal year 2009
    budget will increase equipment funding levels, increasing the amount of
    equipment on hand available to National Guard units. Despite these
    equipment challenges, the Army National Guard stands ready to respond
    to any federal or state mission.
    Dual Mission Operations
        The Army continues to work with National Guard leaders to refine
    requirements for critical dual-use equipment (equipment usable both in
    wartime and in domestic operations) and to ensure that the states and
    territories have sufficient resources during a catastrophe. This
    collaborative effort has successfully garnered Congressional support to
    better equip and modernize the Army National Guard for critical federal
    and state capabilities.
    Domestic Operations
        In May 2007, a severe tornado leveled the Kansas town of
    Greensburg, leaving in its wake 10 fatalities, more than 100 injuries
    and a swath of incredible destruction. The Kansas Army National Guard
    was at the ready. The Kansas Guard's 278th Sustainment Brigade
    established a joint task force near the site; the Army National Guard
    deployed an additional 366 Soldiers; and the Air National Guard
    provided 200 Airmen. The National Guard established shelters,
    distributed food and water, and supported first responders with search
    and rescue, power generation, logistical support, debris removal and
    law enforcement assistance.
        In August, the I-35W bridge in Minneapolis collapsed, claiming 13
    lives. It was the worst independent structural disaster since a 1983
    failure on Interstate 95 in Connecticut. A local network of first
    responders was on the scene quickly to work the rescue and recovery
    effort, including the Minnesota Army National Guard.
        That same month, Texas prepared for Tropical Storm Erin, which made
    landfall on August 16 near Lamar, Texas. Erin dropped 3 to 6 inches of
    rain before moving northward, resulting in emergency declarations for
    70 counties, some with up to 10 inches of rain. At least 17 fatalities
    were attributed to the storm, and an already severe flooding problem in
    the state was exacerbated. At the height of the emergency, 151 Texas
    Army National Guard Soldiers worked to help the communities recover.
    End-strength: Recruiting and Retention
        The Army National Guard is authorized by law to have a limit of
    351,300 Soldiers. Due to a multiple-program team approach, fiscal year
    2007 was a strong year for recruitment and retention. By March 31,
    2007, the Army National Guard exceeded the 350,000-Soldier goal for
    first time since May 2004. By December 31, 2007, the Army National
    Guard strength stood at 353,979 Soldiers.
        Several innovative programs, Soldier incentives and command
    emphasis helped the Army National Guard successfully achieve and
    maintain Congressionally-authorized end-strength levels. They include:
                Active First Program
        Launched October 1, 2007, and set to run through 2013, Active First
    is a pilot program under evaluation by the Army National Guard. The
    program applies to people with no prior military service. Recruits join
    the National Guard and agree to serve in the active Army first. After
    completing an active duty tour, a Soldier can either re-enlist in the
    active Army or revert back to the National Guard to complete his or her
    military obligation.
        The Active First program increases bonus maximums to $20,000 for
    enlistments, $15,000 for re-enlistments and $15,000 for prior service
    enlistments. The National Guard also raised retention bonuses from
    $5,000 to $15,000.
                Guard Recruiting Assistance Program (G-RAP)
        G-RAP is a recruiting program that employs civilian assistants to
    provide recruiting services. As of December 31, 2007, the Army National
    Guard had approximately 123,000 active recruiting assistants--one of
    whom has single-handedly recruited 49 Soldiers (and counting).
                Every Soldier a Recruiter
        Every Soldier a Recruiter is a referral bonus program established
    by the Army to motivate every Soldier to be a recruiter. Launched in
    January 2006, the program has helped bring nearly 3,700 new Soldiers
    into the Army National Guard.
        Continued success in boosting prospect numbers by offering the
    potential for increased monetary compensation could lead to reductions
    elsewhere, such as recruitment advertising on radio and television.
    Only Soldiers assigned specific recruiting and retention positions are
    excluded from participation in the program.
                Army National Guard Recruit Sustainment Program
        The Army National Guard Recruit Sustainment Program is a formal
    process for transitioning new non-prior military service enlistees into
    the life of an Army National Guard Soldier. The Recruit Sustainment
    Program prepares recruits by endowing them with the physical and mental
    abilities to withstand the rigors of basic training and Advanced
    Individual Training. By doing so, the program works to reduce training
    pipeline losses.
        Since instituting the Recruit Sustainment Program, the Army
    National Guard has reduced training pipeline losses by more than 10
    percent with the rate of graduation from this program exceeding 95
    percent. Long-term prospects of keeping new accessions on duty after
    the first year are also showing improvements with gains leading over
    losses by 88 percent.
    Logistics--Depot Maintenance
        The Army National Guard Depot Maintenance Program played an
    integral part of sustainment activities during fiscal year 2007. Unlike
    the active Army, which uses a loaner system, the Army National Guard's
    program is based on a ``repair and return to user'' premise.
    Additionally, program funding must stretch beyond repair work to cover
    testing, measurement and diagnostic equipment calibration.
        Funding for the Army National Guard's surface depot maintenance
    requirement was increased by six percent in fiscal year 2007. During
    fiscal year 2007, the Army National Guard Depot Maintenance Program
    funded the overhaul of 2,276 tactical vehicles.
                                    training
    WAATS (aka ``Gunfighter U'')
        The Western Army National Guard Aviation Training Site (WAATS)
    gives Army Aviation Soldiers the skills to defend our nation. Its
    mission is to conduct training in support of Army aviation readiness.
        Also known as ``Gunfighter University,'' it provides the Army
    National Guard and active Army counterparts the flexibility to train
    attack helicopter units to meet mobilization requirements. With
    realistic training opportunities in desert, mountainous and urban
    operations, the school is a premier attack helicopter training site. It
    provides skills training in all areas necessary to sustain the AH-64
    Apache Attack helicopters, and their maintenance technicians and
    aircrews.
        In 2007, WAATS supported a significant student load playing a
    critical role in the Army's Aviation Transformation plan as active and
    Army National Guard attack battalions transition to the AH-64D Longbow.
    Ground Operating Tempo
        Collective maneuver training is the foundation of unit readiness
    and depends primarily on ground operating tempo (OPTEMPO) funding.
    These funds cover operation and maintenance of authorized equipment and
    training, administration, and housekeeping supplies for all units in
    the Army National Guard. Funding for OPTEMPO impacts Army National
    Guard unit readiness in operations such as Iraq and Afghanistan,
    southwest border security and domestic preparedness.
        In fiscal year 2007, Ground OPTEMPO funding totaled $723 million.
    Significant equipment remains in theater even after a National Guard
    unit's return from deployments. Equipment shortages at home stations
    compel greater use of what is available. These demanding conditions
    accelerate wear and tear resulting in rapid ``aging'' of equipment.
        Maintaining leadership, management oversight and support of the
    ground OPTEMPO program is one of the keystones to maintaining readiness
    of equipment on hand.
                            supporting our soldiers
    Medical Readiness
        The Army's community-based health care organizations provide the
    best medical care for Soldiers in the Medical Holdover Program and
    augment medical treatment facilities. This program allows a
    recuperating Soldier to remain at home on active duty during recovery.
        Program highlights include:
      --Manned primarily by mobilized Army National Guard Soldiers;
      --Oversees more than 1,000 Soldiers;
      --Soldier well-being managed by community-based health care
            organizations;
      --Case managers coordinate health care appointments, track the
            Soldier's progress and ensure that care is up to standards; and
      --Medical care is focused on returning Soldiers to their pre-
            mobilization health status.
        The Army National Guard has mobilized 11 state and territorial
    medical detachments to staff newly created community-based health care
    organizations. They are: Alabama, Alaska, Arkansas, California,
    Florida, Hawaii, Massachusetts, Puerto Rico, Utah, Virginia and
    Wisconsin. Plans are developing to open additional state medical
    detachments as needed.
    Incapacitation Pay
        In March 2007, the Army National Guard started testing the
    Incapacitation Pay software scheduled for release in fiscal year 2008.
    The goal of this paperless process is to legally compensate Soldiers
    who are unable to perform military duties and who demonstrate a loss in
    civilian-earned income resulting from an injury, illness or disease
    incurred or aggravated in the line of duty.
        The incapacitation pay program allows Soldiers to focus on their
    families, concentrate on rehabilitation and work towards a speedier
    recovery without the hardships of income loss.
    Family Readiness Programs
        The National Guard Joint Forces Headquarters within each state,
    territory and the District of Columbia coordinates family assistance
    for all military dependents within each respective location.
        Recent accomplishments and activities that help Army National Guard
    families include:
      --The National Guard Bureau Family Program Office which provides
            training to families to help make them self-reliant throughout
            the deployment cycle process.
      --The Army Families Online website which provides information of
            interest to families of National Guard Soldiers
            www.armyfamiliesonline.org.
      --The Department of Defense (DOD) Military OneSource program which
            provides benefits to all military families (for example,
            counseling services, resources for parents, assistance with
            consumer credit, and free access to online tax return
            preparation).
      --The DOD Military HOMEFRONT web portal which provides information
            about Quality of Life programs and services such as childcare,
            elder care, and programs for resolving domestic abuse or
            domestic violence problems www.militaryhomefront.dod.mil.
        Family readiness is not an option; it is an essential part of our
    mission.
    Family Assistance Centers
        As part of our commitment to those who remain behind when our
    Soldiers deploy, 325 Family Assistance Centers are strategically placed
    in every state and territory to overcome the geographic dispersion of
    Army National Guard families from centralized, installation-based
    service providers. Each Family Assistance Center is staffed monthly
    with military and civilian personnel, members of the Recruiting and
    Retention force, Soldiers on active duty special work orders, contract
    personnel, temporary technicians, state employees and volunteers.
        The continued operation of the Family Assistance Centers in fiscal
    year 2008 is necessary to support services for families' long-term
    welfare during an era of persistent conflict.
    Freedom Salute Campaign
        The Freedom Salute Campaign, one of the largest Army National Guard
    recognition endeavors in history, is designed to publicly acknowledge
    Army National Guard Soldiers and those who have supported them in
    service to our nation. So far, the campaign has recognized more than
    100,000 deserving Soldiers, family members, friends, employers, and
    other important persons for their contributions since the terrorist
    attacks on September 11, 2001.
       lieutenant general craig r. mc kinley, vice chief, national guard
                    bureau and director, air national guard
                           message from the director
        Since before the birth of manned flight, Airmen have embarked on
    proving the validity of mastering the third dimension of warfare. Our
    Air Force is the proven leader in this era of air dominance--an
    advantage no other nation on earth has ever matched. However, now is
    not the time for complacency.
        We can't predict what challenges are on the horizon. What we know,
    however, is that the speed of advances in technology is eroding and
    encroaching on our technological advantage. We must remain vigilant and
    prepared to counteract this dangerous erosion.
        We support civil authorities in protecting life and property
    through rapid response airlift, supplementing search and rescue,
    assisting aerial fire fighting, providing wide-area situational
    awareness, and airdropping food and supplies to those isolated by
    floods or blizzards. We also provide support capabilities to primary
    airpower missions such as medical triage and aerial evacuation, civil
    engineering, security force augmentation, infrastructure protection and
    HAZMAT response.
        Ninety-four Air National Guard units provide security at home-
    station and deployed locations through law enforcement patrols,
    integrated base defense and antiterrorism/force protection initiatives.
    Security Forces professionals also provide nuclear security,
    information security, combat training, combat arms training and
    maintenance services. Every day, more than 6,000 Air National Guard
    members stand watch, patrolling the skies and assisting civil
    authorities protecting U.S. borders.
        At the same time, approximately 7,000 Airmen are deployed around
    the world fighting terrorism in Southwest Asia and Africa, and
    supporting joint and coalition forces through their airlift, air
    refueling, intelligence, surveillance and reconnaissance capabilities.
        Whether fighting overseas, protecting the homeland, or responding
    to hurricanes, fires and tornadoes, Air National Guard members continue
    to play an integral part in disaster response in communities throughout
    America and abroad.
        In 2007, throughout the world, the Air National Guard:
      --Supported 34,554 activations (31,922 voluntary and 2,632
            involuntary).
      --Deployed 29,524 (26,920 voluntary and 2,604 involuntary).
      --Deployed service members to dozens of countries on every continent,
            including Antarctica.
      --Participated in missions in Iraq, Afghanistan and Bosnia;
            humanitarian airlifts to Southeast Asia and Africa; drug
            interdiction in Latin and South America; exercises in Europe
            and Japan; and many other missions.

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        The Air National Guard is forward thinking. We adapt to ensure we
    have the capability to meet the needs of our nation. In the past year,
    the Air National Guard expanded into new capabilities including
    unmanned aerial systems (MQ-1 Predator and RQ-4 Global Hawk),
    intelligence collection and exploitation (DCGS Sentinel), space
    operations support and cyberspace. Air National Guard members have
    adapted their traditional community-based organizations to associate
    more closely with both active duty and other reserve components. New
    organizational structures are designed to capitalize on the Air
    National Guard's competitive advantage of cost effectiveness and our
    core competency of experience.
        A crucial part of the American military, the Air National Guard
    remains vigilant and prepared. The Air National Guard of the 21st
    century stands as a sleek, efficient and dedicated part of our nation's
    defense.
                    homeland defense and domestic operations
    Securing the Home Front While Defending the Nation
        In every natural disaster occurring in the United States, the Air
    National Guard provides critical air capabilities to the states.
    Airpower is crucial for protection against unknown eventualities
    including national emergencies. As a nation, we cannot afford to assume
    otherwise.
        Since September 11, 2001, thousands of Air National Guard personnel
    have provided complete air sovereignty across the United States. We
    provide 95 percent of our nation's fighter interceptor aircraft, 85
    percent of the aerial refueling capability, and 100 percent of the air
    defense command and control system. Maximizing the traditional basing
    locations, capitalizing on high experience levels and leveraging a long
    professional history in Air Defense operations, the Air National Guard
    continues to serve as the backbone of this vital mission for the near
    future.
        In early 2007, the Air National Guard provided disaster relief
    during a Colorado snowstorm and a Kansas tornado. Since October 1,
    2007, our Modular Airborne Fire Fighting systems have spread 132,479
    gallons of retardant on wildfires. Air National Guard pararescue and
    special tactics units, highly experienced, reliable and ready forces,
    are not only deployed in combat missions but also serve in homeland
    defense/disaster relief contingencies. Air National Guard squadrons are
    deployed in combat; they secure public safety against missile launches;
    provide rescue coverage for the space shuttle if necessary; and provide
    full-time search and rescue coverage for Alaska.
        Through its counterdrug operations, the Air National Guard provides
    specialized airborne resources critical in the effort to stem the flow
    of drugs and associated violence crossing our borders. Moreover, as a
    strong component of the President's Operation Jump Start and other
    missions, the Air National Guard helps keep America's borders secure.
        Since July of 2006, Operation Jump Start Air Guard has:
      --Flown 984 border sorties (13,922 passengers).
      --Airlifted 1,193 tons of materials and supplies.
        In 2007 alone, the Air National Guard supported Operation Jump
    Start by:
      --Activating 3,250 personnel (3,150 deployed).
      --Participating in infrastructure protection and border surveillance
            resulting in a 75 percent decrease in illegal border crossings.

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        In 2007, the Air National Guard provided 2,676 individuals and
    274,705 duty days using RC-26B aircraft to assist local, state, and
    federal law enforcement authorities in conducting counterdrug
    operations.

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                           critical to today's fight
        Like the Air Force, the Air National Guard is integrated into
    America's fighting force overseas. Protecting the homeland from
    terrorist threats begins on American soil and extends overseas. On
    September 11, 2001, Air National Guard aircraft were the first to
    respond. Since 1991, the Air National Guard has provided the highest
    percentage of its force, more than any other reserve component, in
    responding to America's needs.
        Over the past six years, we have:
      --Deployed more than 203,700 Airmen (92 percent voluntarily
            deployed).
      --Flown more than 179,000 missions.
      --Logged more than 558,000 flying hours.
        During the peak of Operation Iraqi Freedom, more than 22,000 Air
    National Guard members were either mobilized or volunteered to support
    today's fight.

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        During the same period, in support of Operation Enduring Freedom,
    the Air National Guard flew more than 25 percent of both fighter and
    tanker sorties. In addition, the intelligence, surveillance and
    reconnaissance air support provided by the Air National Guard in both
    Operation Iraqi Freedom and Operation Enduring Freedom contributed
    significantly to safeguarding the troops on the ground while pursuing
    and terminating terrorist leaders.
        In addition to our airborne capabilities, the Air National Guard
    has contributed ground forces in the following manner:
      --15 percent of the Air National Guard's expeditionary combat support
            was engaged during Operation Iraqi Freedom and Operation
            Enduring Freedom.
      --60 percent of the Air National Guard security forces made
            expeditionary combat support contributions.
      --25 percent of the Air National Guard's intelligence, services and
            weather personnel were mobilized.
                          developing adaptable airmen
        Readiness remains a top priority for the Air National Guard. Our
    goal is to continue to develop adaptable Airmen, service members who
    are always in a state of readiness and are willing and able to
    accomplish the job at hand. Proper funding for continued recruitment
    and training will ensure that the quality of our service members
    remains high. We are developing Airmen for leadership roles to meet the
    needs of our Total Force--today and tomorrow.
                            recruiting and retention
        Adaptable Airmen are critical to the Air National Guard. They are
    combat-ready to defend national interests and balance global strategic
    risk. To preserve these assets, we need significant investment in our
    personnel, operations and maintenance accounts.
        The top priority for Air National Guard recruiting and retention is
    to meet year-end goals, and build and retain a quality force to meet
    mission requirements.
        For fiscal year 2007, the Air National Guard reported an end-
    strength of 106,254, or 99.3 percent of our goal. We accomplished this
    goal in the face of challenges like base realignment and closure
    decisions, and Total Force Initiatives implementation.
        Air National Guard retention is also solid and has exceeded annual
    officer retention goals for fiscal year 2007. The Air National Guard
    ended fiscal year 2007 retention at 89.5 percent overall. The Air
    National Guard continues to have an excellent retention rate, which
    decreases the cost of replacing valuable members. To maintain this
    momentum we continue to work to ensure the Air National Guard
    Recruiting and Retention program is adequately funded.
                  transforming into a capabilities-based force
        Transforming from a platform-based force to a capabilities-based
    force is critically important for the Air National Guard. We have to
    ensure our force is building the capabilities of the Combatant
    Commanders, Air Force and National Guard need to defeat tomorrow's
    adversary and support our domestic needs.
        The Air National Guard's capabilities-based force realignment
    requires shifting functions, organizational constructs, and realigned
    priorities across the entire force. This has to be accomplished while
    fully engaged in today's fight. Simply put, we will transform at mach
    one speed; we do not have the luxury of pausing operations while re-
    equipping and resetting our force.
        Some of our missions demand a different force than the one we have
    today and will affect us in these ways:
      --Mission changes, aircraft movements and programmatic decisions will
            directly impact about 15,000 Air National Guard members in 53
            of the 54 states and territories.
      --Estimated cost for fiscal year 2009 is $350 million; and involves a
            complex interplay of people, training, equipment and
            facilities.
      --Fully implementing, retraining and rebalancing our force will take
            5 to 10 years.
        As we shift aircraft and missions, some units are transitioning
    into ground-based capabilities including intelligence, surveillance and
    reconnaissance duties. This transition is necessary for the Air
    National Guard to maintain its essential role as part of our nation's
    defenses.
        In a few years we'll be able to reflect on this period of change
    and recognize how hard work, tough decisions and forward thinking
    reshaped our National Guard into a more capable force.
                equipping and modernizing the air national guard
        Developing and fielding ``dual-use'' capabilities are the
    cornerstones of the Air National Guard's cost effective contribution to
    combat and domestic operations. In fiscal year 2008, with Congressional
    assistance, we will address critical Homeland Defense shortfalls.
        Specifically, we will address:
      --Additional Expeditionary Medical Support suites;
      --Enhanced deployable wireless communication capability;
      --More fire fighting vehicles (current fleet averages 30 years old);
      --Upgraded security weapons;
      --Enhanced explosive ordnance disposal; and
      --Improved hazardous material handling equipment.
        The Air National Guard has forces in every Air Expeditionary Force
    deploying to the current combat theaters. Consequently, the Air
    National Guard must be equipped with the active duty force to meet
    combat mission demands. The age of the fleet, mission demands, and
    combat readiness require a parallel approach to aircraft modernization
    working in tandem with active duty forces.
    An Aging Fleet
        Our Air Force is struggling with sustainment bills versus
    recapitalization funding, which directly impacts the Air National
    Guard. More than 42 percent of the Air National Guard fleet is 25 years
    or older:

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    Navigation and Combat Systems Modernization Needs
        The Air National Guard is critically important to the Air Force's
    Total Force effort. Forty percent of the Air Force's C-130 fleet
    resides in the Air National Guard. In fiscal year 2007, Air National
    Guard C-130s flew over 11,000 hours in support of Operation Enduring
    Freedom and over 4,200 hours in Operation Iraqi Freedom. In support of
    the Aeromedical Evacuation mission, Mississippi Air National Guard C-17
    aircraft returned over 19,000 patients to Germany and the United States
    from Iraq.
                C-130, C-5 and C-17
        The C-130, C-5 and C-17 aircraft all operate in environments of
    increasing levels of threat and complexity. We must ensure these
    aircraft continue to provide our Airmen with the best protection and
    warning systems available.
                Combat Aircraft
        Air National Guard combat aircraft--A-10, F-15 and F-16--comprise
    approximately 30 percent of the Air Force's combat capability. Our
    maintainers continue to keep our fleet combat ready and lethal.
                E-8C Joint Surveillance Target Attack Radar System
        The E-8C Joint Surveillance Target Attack Radar System (JSTARS)
    continues to be the Combatant Commander's command and control system of
    choice. JSTARS supports the warfighter by locating, classifying, and
    tracking ground targets and movement, day or night, in all weather
    conditions, at ranges in excess of 150 miles. All 17 E-8Cs are operated
    by the Air National Guard's 116th Air Control Wing at Robins Air Force
    Base in Georgia. Our challenge is to keep the system modernized while
    maintaining the current operational tempo. The most urgent
    modernization need for the JSTARS includes re-engining.
                Rescue Squadrons
        Air National Guard Rescue Squadrons comprise 30 percent of the Air
    Force's high-demand combat deployable pararescue capability while
    special tactics personnel provide 25 percent of the Air Force's Special
    Tactics capability. These squadrons provide the highly experienced,
    skilled and reliable force for both deployed and domestic operations
    support.
                Predator/Reaper Operations Center
        The Air National Guard conducts predator operations and training in
    Arizona, California, North Dakota, New York, Nevada and Texas Air
    National Guard units. We continue to pursue development and acquisition
    of an integrated Predator/Reaper Operations Center (POC). The POC will
    allow smooth operation and control of current and future
    transformational warfighting and homeland defense missions. The new POC
    design will integrate the multiple systems that currently run
    independently.
                KC-135
        To meet continuous demands of global power projection, the Air
    National Guard KC-135s are effective. These aircraft are crucial to
    supporting the warfighter.
                Operational Support Aircraft
        Finally, Air National Guard Operational Support aircraft--C-40, C-
    38 and C-21--meet the special mission transportation needs of
    distinguished visitors and Congressional delegations.
                                    training
        Significantly important to the Air National Guard's training of
    Airmen is the Distributed Mission Operations program. The program
    supports all weapons systems. It includes flight and mission crew
    trainers to provide high fidelity, immersive simulators for individual,
    team, inter-team and full mission rehearsal training.
    major general william h. etter, acting director, joint staff, national
                                  guard bureau
                           message from the director
        The National Guard Bureau (NGB) enters 2008 with Congressional
    designation as a joint activity of the Department of Defense (DOD) and
    not strictly as a joint bureau of the Army and Air Force. How important
    is that to the history of an institution that has served this nation
    for more than 371 years?
        From a historical perspective, this change in law is on a par with
    the National Defense Act of 1916 which created the term ``National
    Guard'' and made the state militias a component of the U.S. Army.
        New levels of responsibility and authority come with the new law--
    requirements for plans and protocols for change. As a joint DOD
    activity, for example, manpower requirements for the bureau are now
    under the purview of the Secretary of Defense in consultation with the
    Chairman of the Joint Chiefs of Staff. The Secretary and the Chairman,
    working in consultation with the Secretaries of the Army and Air Force,
    are responsible for the development of a new charter for the National
    Guard Bureau.
        While there will be changes, one thing will remain constant for the
    Joint Staff and the Chief of the National Guard Bureau. They will serve
    as the channel of communication between the Defense Department and the
    Governors of these sovereign states via their Adjutants General.
        At the end of 2007, National Guard members were doing remarkable
    things in Iraq, Afghanistan, Kosovo, the Horn of Africa, and 40 other
    countries. They were also serving here at home, protecting our borders,
    fighting fires, providing rescue and recovery in the wake of disasters,
    and interdicting the flow of illegal drugs.
                        supporting operation jump start
        In May of 2006, the President asked the National Guard to
    temporarily provide support to the Department of Homeland Security's
    (DHS) effort to secure the southwest border. In 2008, that mission will
    end as originally conceived. While never meant to replace border patrol
    agents with Guardsmen on a one-to-one basis, the National Guard's
    support has provided DHS with time to grow its own capabilities. U.S.
    Customs and Border Protection is now better resourced and equipped than
    when the mission started. National Guard members from every state and
    territory have served in the four southwest border states under the
    command of the Governors and at the direction of U.S. Border Patrol.
        As of November 30, 2007, National Guard members:
      --Helped DHS apprehend more than 169,000 aliens and seize more than
            269,000 pounds of marijuana, 4,900 pounds of cocaine, and 7,900
            vehicles.
      --Built more than 37 miles of fence, 18 miles of road and 70 miles of
            vehicle barriers.
      --Provided support to local, state and federal law enforcement
            through the Counterdrug program.
      --Conducted non-core border activities which allowed 581 Border
            Patrol agents to direct border security missions, and to hire
            and train additional agents.
      --Allowed Border Patrol agents to enhance their law enforcement and
            border security efforts against all threats--illegal aliens,
            drugs, weapons and possible terrorists.
      --Aided in apprehending 137,387 aliens in the past year, increasing
            more than six times the number recorded in the first five
            months after operations began in June 2006.
                       national guard counterdrug program
        Because of the National Guard's Title 32 status, we are not
    restricted by posse comitatus (the federal law that otherwise prohibits
    support of local law enforcement by members of the uniformed services),
    it serves a particularly unique role for the Department of Defense in
    the fight against illicit drugs. Since Congress authorized the National
    Guard to perform interdiction and anti-drug activities in 1989, the
    program has worked tirelessly with civilian law enforcement agencies
    and community-based organizations.
        Counterdrug program highlights include:
      --Employing more than 2,500 Soldiers and Airmen in the 54 states and
            territories to support over 5,000 law enforcement agencies at
            the local, state and federal levels, preventing illicit drug
            import, manufacture and distribution.
      --Contributing numerous liaison officers to work with State Joint
            Force Headquarters within the four southwest border states
            (Texas, Arizona, New Mexico and California).
      --Allowing the states unprecedented access to National Guard Bureau
            assets resulting in a seamless flow of communication between
            the Joint Force Headquarters and National Guard Bureau.
      --Reaching about 2.8 million people in fiscal year 2007 through drug
            demand reduction efforts, the National Guard Counterdrug
            program has unparalleled relationships within its communities;
            studies have shown that this can lead to drug use prevention
            among youth.
      --Participating in nearly 80,000 drug-related actions.
      --Supporting local law enforcement who seized more than 1.4 million
            pounds of illegal drugs (including more than 3 million
            ``designer drug'' pills known by the street name, ecstasy).
        In order to continue to support the new light utility helicopter,
    currently used for the counterdrug mission, adequate funding is
    required during all of the acquisition years of 2008-2013. The
    equipment is critical to both counterdrug, as well as in support of
    first responders during natural disasters.
        The National Guard Bureau Joint Staff continues to focus on
    ``mission first, people always.'' We continue to increase functions and
    services that enhance the quality of life for the men and women of the
    National Guard and our communities. In the following paragraphs, we
    offer a sampling of the accomplishments that demonstrate our commitment
    to this nation, and the Citizen-Soldiers and Airmen who protect it.
                              domestic operations
    Information Sharing Environment Initiatives
        The National Guard Bureau and the State Joint Force Headquarters
    are key partners in the development, implementation and execution of
    the National Strategy for Information Sharing Environment initiatives.
        This partnership was instrumental in assisting a unified command
    leadership to effectively allocate resources and handle hot spots
    during the 2007 California wildfires. The ability for key federal,
    state, local and tribal partners to view a real-time common operating
    picture enhanced command, communications and coordination.
    Critical Infrastructure Protection and Mission Assurance Assessment
            (CIP-MAA)
        The National Guard Bureau is developing 10 National Guard
    Vulnerability Assessment Teams to provide analysis of sites deemed
    critical by the Department of Homeland Security. With a newly developed
    web-based automated reporting tool, the Critical Infrastructure
    Protection and Mission Assurance Assessment office can provide
    continual, detailed readiness information to National Guard Reaction
    Forces in all states and territories.
                          support to civil authorities
        The National Guard Bureau and the 54 states and territories are
    prepared to provide response to a wide variety of homeland defense/
    civil support missions.
        The National Guard has supported homeland security missions
    guarding airports, nuclear power plants, domestic water supplies,
    bridges, tunnels, military assets, counterdrug operations and more.
    Across the country, National Guard members have responded to
    hurricanes, snow storms, wildfires, border security and other missions
    requiring individual assistance. During fiscal year 2007 the National
    Guard Bureau Joint Domestic Operations Division provided subject matter
    expertise and facilitated information sharing across federal, state,
    and local agencies in over 554 instances of non-federalized National
    Guard support to civil authorities.
    State Active Duty Support to Civil Authorities
        During fiscal year 2007, the National Guard supported hundreds of
    disaster and crisis response missions using state active duty Soldiers
    and Airmen. These humanitarian relief operations included construction,
    security, communications, aviation, medical, transportation, law
    enforcement support, search and rescue, debris clearance and relief
    supply distribution.
        The following is a more detailed list of those disaster and crisis
    response missions:
      --6 Hurricane and Tropical Storms affecting the Gulf Coast states,
            Guam and the Virgin Islands;
      --20 flood disasters in 14 states;
      --11 tornado recovery responses in 14 states;
      --17 winter and spring storm response missions affecting 23 states;
      --11 water supply and purification missions in 11 states;
      --1 earthquake response in Hawaii;
      --1 bridge collapse in Minnesota;
      --17 missions in support of law enforcement in 14 states; and
      --304 search and rescue missions in 25 states.
        Additionally, the National Guard provided critical infrastructure
    protection for facilities deemed critical by the states. Joint Force
    Headquarters Louisiana alone maintained a cumulative total of 109,500
    duty days in ongoing support of law enforcement for Hurricane Katrina
    in fiscal year 2007. (Possible ``Did you know'' Box)
    Joint Enabling Teams and the Liaison Officer Program
        The National Guard Bureau Joint Enabling Team program assists the
    54 states and territories with communication and request flow
    processes.
        Since development of the Joint Enabling Teams in fiscal year 2006,
    they have been successfully employed in live emergency responses to
    Hawaii for an earthquake; Kansas for tornadoes/floods; Hawaii and
    Puerto Rico for hurricanes; Texas for a tropical storm; and California
    for wildfires.
        The Joint Enabling Team program must be maintained in a
    collaborative effort with the supported states and territories to save
    lives and mitigate suffering.
    Joint Continental United States (CONUS) Communications Support
            Environment
        The National Guard continues to provide communication systems for
    non-federalized National Guard Forces involved in domestic operations
    for civil authorities and homeland defense activities. This is an
    essential requirement for non-federalized National Guard domestic
    operations; particularly in those cases similar to Katrina, in which a
    large number of states provided National Guard forces in support of a
    particular Governor. This capability is even more critical with the
    passage of the National Guard Empowerment Act, and we must provide
    Congress clear visibility within the President's budget for the funding
    support required for non-federalized National Guard domestic
    operations.
    National Guard Support to Civil Fire Fighting
        The National Guard provides military support to wildland fire
    fighting as a part of the Department of Defense response plan.
        In fiscal year 2007, National Guard assets delivered more than 5.3
    million gallons of retardant during some 6,800 fire suppression drops
    in fire fighting efforts across the country. In September 2007, over a
    five-day period, National Guard helicopters spread more than 35,000
    gallons of retardant on the California Lick Fire, aiding in preventing
    the destruction of homes, commercial buildings and livestock.
        National Guard assets are available year-round but are especially
    focused from April to October--the prime period for forest fires.
    Aviation fire fighting assets reside in North Carolina, California,
    Wyoming, Florida, Nevada, New York and Oregon National Guard aviation
    units and have been greatly successful in past years.
        Throughout the 54 states and territories, National Guard units also
    have 249 ``bambi buckets'' strategically located to combat wildfires
    nationwide. These fire buckets range in size from 144 to 2,000 gallons
    and can be carried by UH-1, UH-60, HH-60 and CH-47 helicopters from the
    Army and Air National Guard. Fire fighting assets and crews assisted
    state and federal forest fire fighting efforts in California, Nevada,
    Florida and Georgia in fiscal year 2007. (Possible ``Did you know''
    Box)
    Vigilant Guard Regional Exercise Program
        Vigilant Guard provides an opportunity for National Guard Joint
    Task Forces and field units to improve command and control, and
    operational relationships with internal, civilian, and military
    partners against homeland security threats. The exercise involves all
    the command elements of Northern Command, National Guard Bureau,
    Department of Defense, U.S. Transportation Command, Department of
    Homeland Security and other supporting U.S. government agencies.
        The states, divided into regions, have four opportunities per year
    to test coordinated tactics, techniques and procedures among state and
    federal civil and military partners in response to a regional level
    incident. The desired outcome is an increase in readiness while
    developing partnerships at all levels to enhance the unity of effort in
    the future.
        Vigilant Guard highlights include:
      --Eight Vigilant Guard regional exercises have involved 34
            participating states.
      --In May 2007, a combined Vigilant Guard and U.S. Northern Command
            exercise in Indianapolis tested more than 2,000 National Guard
            personnel from Indiana and surrounding states.
    Joint Interagency Training and Education Center
        An integral part of continuing the National Guard's transformation
    for the future is building relationships and capabilities with our
    interagency partners.
        Joint Interagency highlights include:
      --Interagency training capability has afforded critical training and
            interaction with over 90 different organizations and agencies
            in over 800 exercises during more than 30,000 days of training
            since September 11, 2001.
      --The Defense Department established some funding support to develop
            National Guard interagency training capability in 2007.
        More than 200 training, exercise, or assessment activities are
    scheduled in 2008. With continuing support from both DOD and Congress,
    the National Guard will continue to transform itself into a premier
    homeland security and defense organization, leveraging state and
    federal responses, capabilities and expertise.
                supporting the warfighter--connect the community
    National Guard Family Program
        The National Guard Bureau Family Program provides members and their
    families with education, training, community outreach, and partnerships
    in three critical areas:
      --Family Readiness is a six-step process that prepares families for
            having a loved one in the National Guard. The process covers
            all phases of service, including a welcome brief, in
            processing, training, pre-deployment, deployment, reunion and
            reintegration.

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      --Family Assistance provides support to military families during long
            or short-term deployments. Over 400 contracted personnel across
            the nation provide crisis intervention and community outreach
            services, as well as information and referral services on
            legal, financial, medical and dental matters. Help is also
            available for families online at: www.guardfamily.org.
      --Program Services provides support services, education, and
            information to assist the National Guard members and family
            members. This is accomplished through family services, youth
            programs, community outreach, national volunteer programs and
            training initiatives.
    Home Station Transition Support
        Last year, Congress appropriated funds for National Guard pilot
    programs to help returning veterans reintegrate to their civilian
    lives. Congress also established the Yellow Ribbon Reintegration
    Program in the fiscal year 2008 National Defense Authorization Act. In
    the year ahead, the National Guard Bureau looks forward to working
    closely with the Office of the Assistant Secretary of Defense for
    Personnel and Readiness to implement the program. We will develop these
    capabilities in view of the best practices of the several states that
    have created their own programs. These programs support the difficult
    process of transitioning from a combat deployment to civilian status by
    offering support on civilian employment, the Department of Veterans
    Affairs, educational benefits and health care.
    Youth ChalleNGe Program
        The National Guard Youth ChalleNGe Program is a community-based
    concept that leads, trains, and mentors at-risk youths, ages 16 to 18,
    and assists them in becoming productive citizens. The National Guard
    Youth ChalleNGe Program is the second largest mentoring program of its
    kind in the nation--second only to the Boy Scouts of America. ChalleNGe
    is a coeducational program, consisting of a five-month ``quasi-
    military'' residential phase and a one-year post-residential phase. The
    young adults targeted to become Cadets in this program are unemployed
    high school drops outs--but must be drug fee and have no police record.
        Since 1993 ChalleNGe has grown to 34 sites in the United States and
    Puerto Rico. The program has graduated over 76,000 young men and women.
        A 1998 Vanderbilt University report placed the value of intervening
    in the life of such young people somewhere between $1.5 and $2 million
    per youth. Today, at an average cost of $14,000 per student per year,
    the taxpayer reaps an estimated savings of $109 million in juvenile
    corrections costs annually.
    Veterans Affairs Liaison
        Sustained mobilization of the National Guard since September 11,
    2001 has resulted in a larger number of members eligible for
    entitlements through the Department of Veterans Affairs (VA).
        Since the May 2005 memorandum of agreement was signed to support
    National Guard members, significant progress has been made to improve
    the services available to National Guard members and their families. A
    permanent liaison has been appointed in both the National Guard Bureau
    and Department of Veterans Affairs to work out issues at the federal
    level. Additionally, 57 Transition Assistance Advisors have been
    trained and placed in the Joint Forces Headquarters to act as liaisons
    among the members entitled to VA benefits within a state and the local
    Veterans Affairs, veterans' service organizations and community
    representatives.
    Employer Support of the Guard and Reserve
        The basic Employer Support of the Guard and Reserve (ESGR) mission
    continues to be gaining and maintaining the support of public and
    private employers for the men and women of the National Guard and
    Reserve.
        Today, nearly 4,200 volunteers serve on local ESGR committees. With
    resources and support provided by the National ESGR Office and the
    National Guard Bureau, these 54 ESGR committees conduct Employer
    Support and Outreach programs. This includes information opportunities
    for employers, ombudsman services, and recognition of employers who
    support and encourage participation in the National Guard and Reserve.
                         transformation for the future
        The National Guard continues to staff and publish logistics
    doctrine and plans for domestic contingency operations and emergencies.
    The National Guard Bureau is committed to the transformation and
    integration of the best available information technology enablers into
    our joint logistics plans, exercises and operations.
        Important upgrades and new equipment have been fielded for the 57
    Civil Support Teams and 17 Chemical, Biological, Radiological, Nuclear,
    and High-Yield Explosives (CBRNE)-Enhanced Response Force Package
    (CERFPs) locations. The next generation of Civil Support Team equipment
    was fielded for various operational systems; consisting of the Unified
    Command Suite, Analytical Laboratory Suite and Advance Liaison Vehicle.
    Additionally, a ground transportation equipment program for the CERFP
    units was staffed for resource allocation consideration. Staff
    assistance visits were conducted to identify and fill equipment
    shortfalls in the initial 12 CERFP organizations to bring them to the
    same level of capability as the five latest additions to the CERFP
    force structure. Based on these assistance visits, accountability
    procedures and material fielding plans were established to synchronize
    new equipment delivery.

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     Seventeen CERFPs are currently assigned with at least one in each of
    the 10 Federal Emergency Management Agency regions, with some having up
              to three based on population density for that area.

        With the ongoing support of Congress and the American people, the
    National Guard will continue to secure the American homeland while
    defending her interests abroad. America can depend on the National
    Guard to be ``Always Ready, Always There.''
                            state adjutants general
        Alabama: Major General Abner C. Blalock Jr.
        Alaska: Major General Craig E. Campbell
        Arizona: Major General David P. Rataczak
        Arkansas: Major General William D. Wofford
        California: General William H. Wade, II
        Colorado: Major General H. Michael Edwards
        Connecticut: Major General Thaddeus J. Martin
        Delaware: Major General Francis D. Vavala
        District of Columbia: Major General David F. Wherley, Jr.,
    Commanding General
        Florida: Major General Douglas Burnett
        Georgia: Major General William T. Nesbitt
        Guam: Major General Donald J. Goldhorn
        Hawaii: Major General Robert G. F. Lee
        Idaho: Major General Lawrence F. Lafrenz
        Illinois: Major General (IL) \1\ William L. Enyart Jr.
        Indiana: Major General R. Martin Umbarger
        Iowa: Major General Ron Dardis
        Kansas: Major General Tod M. Bunting
        Kentucky: Major General (KY) \1\ Edward W. Tonini
        Louisiana: Major General Bennett C. Landreneau
        Maine: Major General John W. Libby
        Maryland: Major General Bruce F. Tuxill
        Massachusetts: Brigadier General (MA) \1\ Joseph C. Carter
        Michigan: Major General Thomas G. Cutler
        Minnesota: Major General Larry W. Shellito
        Mississippi: Major General Harold A. Cross
        Missouri: Major General King E. Sidwell
        Montana: Major General Randall D. Mosley
        Nebraska: Brigadier General (NE) \1\ Timothy J. Kadavy
        Nevada: Major General Cynthia N. Kirkland
        New Hampshire: Major General Kenneth R. Clark
        New Jersey: Major General Glenn K. Rieth
        New Mexico: Brigadier General (NM) \1\ Kenny C. Montoya
        New York: Major General Joseph J. Taluto
        North Carolina: Major General William E. Ingram, Jr.
        North Dakota: Major General David A. Sprynczynatyk
        Ohio: Major General Gregory L. Wayt
        Oklahoma: Major General Harry M. Wyatt, III
        Oregon: Major General Raymond F. Rees
        Pennsylvania: Major General Jessica L. Wright
        Puerto Rico: Brigadier General (PR) \1\ David A. Carrion-Baralt
        Rhode Island: Major General Robert T. Bray
        South Carolina: Major General (Ret) Stanhope S. Spears
        South Dakota: Major General (SD) \1\ Steven R. Doohen
        Tennessee: Major General Gus L. Hargett, Jr.
        Texas: Major General Charles G. Rodriguez
        Utah: Major General Brian L. Tarbet
        Vermont: Major General Michael D. Dubie
        Virginia: Major General Robert B. Newman, Jr.
        Virgin Islands: Brigadier General (VI) \1\ Renaldo Rivera
        Washington: Major General Timothy J. Lowenberg
        West Virginia: Major General Allen E. Tackett
        Wisconsin: Brigadier General (WI) \1\ Donald P. Dunbar
        Wyoming: Major General Edward L. Wright

        \1\ Denotes Brevet Rank.
                                  in memoriam
        Our Dedication to the men and women of the National Guard who
    sacrificed all for their nation and state.

        Senator Stevens. Thank you very much. We have about 50
    minutes left and there are seven of us. I would urge members to
    just follow the concept of 7 minutes apiece. We have the
    chairman and co-chairman of the National Guard Caucus. So I
    will call on Senator Leahy first and then Senator Bond and then
    those who came in order.
        Senator Leahy. Well, thank you very much. Both Senator Bond
    and I are proud to co-chair the National Guard Caucus. We have
    95 of 100 Senators on it, and it is hard to get 95 to agree on
    the time of day around here. That is because we are proud of
    the 450,000 men and women in the Guard. We are also very proud
    of the three of you, General McKinley, General Blum, General
    Vaughn, for the work you do.
        General Blum, I understand there is still at least a $10
    billion shortfall on the long-range Army budget plans to re-
    equip the Guard. That is gear that is absolutely necessary to
    allow the force to carry out its dual missions. I also look at
    the Air National Guard modernization book which reveals our
    best pilots and operators say they need at least $8 billion in
    upgrades just to carry out their missions.
        It seems a little bit better than it has been in recent
    years, but you cannot get around the basic fact that these
    equipping gaps exist. We understand why. With the war in Iraq
    and all, a lot has been drawn down. But we also to prepare for
    natural disasters as well as threats worldwide which simply
    increase every year.
        Can you tell us what plans there are to close these kind of
    gaps?
        General Blum. I will give it to you, Senator Leahy, at the
    macro level. Then if you want further detail in the Army
    program, General Vaughn will provide it or General McKinley
    will provide it for the Air National Guard, if you so desire.
        All three Departments that really influence how we get
    equipped and where the resources come from have re-examined
    their strategies and their priorities as far as the National
    Guard is concerned. There is a serious commitment on the part
    of the Army and the Air Force and the Department of Defense to
    make sure that we have those items of equipment that are
    absolutely necessary to be a Federal reserve of the Army, a
    Federal reserve of the Air Force, to meet our joint
    requirements that are out there, and also to satisfy the
    finally recognized mission of supporting the Governors in a
    realistic manner, no notice, here at home in case of weapons of
    mass destruction, terrorism, or a catastrophic event brought on
    by mother nature, as you have seen this week with the
    tornadoes, the hurricane and----
        Senator Leahy. It is the no-notice part that I worry the
    most about. It is one thing if you have got plenty of time. You
    can ramp up. You can borrow from this guy's unit or that guy's
    unit, given plenty of notice. I am far more worried about the
    no-notice.
        General Blum. Right.
        Senator Leahy. And I am not sanguine enough to assume we
    are not going to have some no-notice problems.
        General Blum. We share that concern and we now finally have
    some partnering with the Department of the Army and the Air
    Force and their responsibilities to help us with that no-notice
    response. This is unprecedented in the historical past of the
    Army and Air Force. It is a good step forward.
        But you have accurately laid out that even with--while I
    have to support and do support the President's budget, if more
    resources were to be applied earlier, then we have the capacity
    to absorb those resources and turn that authorization or that
    appropriation into real readiness capability, meaning the
    equipment that we need to go out the door in a no-notice
    response tonight if necessary or this afternoon.
        Senator Leahy. My staff will continue to work with yours
    and with General McKinley's and General Vaughn's on that
    because I am getting very, very worried that we have gone
    beyond a tipping point.
        General McKinley, you will not be surprised if I talk about
    the 158th Fighter Wing in Vermont. It is proudly flying the F-
    16 Fighting Falcon. It is one of over 15 units in the Air Guard
    that fly the aircraft. That is a sizable percentage of the Air
    Force tactical air capabilities. It is getting kind of old--
    that airplane. It is going to be around a while until we see
    the F-35 or whatever comes in to replace it.
        What kind of upgrades are needed? Do we have the funding
    for that?
        General McKinley. Senator Leahy, I appreciate your strong
    support, and yes, the Burlington, Vermont unit is one of our
    finest, and I am very proud of them.
        We meet annually. As you know, members of your staff have
    worked with us closely to bring up the types of equipment
    issues that are necessary to keep the legacy fighters that the
    Air National Guard has relevant. And we publish annually a
    modernization book that is really developed by our weapons and
    tactics officers in the squadrons. This is not some theoretical
    concept. This is what the actual fighter pilots who train our
    members use. And so we are able to collect that data. We have
    collated it. Senator, you have a copy of it. And that is where
    we go back to the Air Force, and through your help with the
    National Guard and Reserve equipment account, and try to make
    sure that the legacy fighters continue to serve our Nation well
    because we are going to expect these fighters to continue to
    perform for the next decade or so. So it is vitally important,
    and I thank you again and members of the subcommittee for your
    help to maintain these aircraft.
        Senator Leahy. And I am sensitive to the time and I agree
    with Senator Stevens on that. So you will get at least private
    calls from me on community basing.
        General McKinley. Yes, sir.
        Senator Leahy. I think that is a great idea. I know it is
    growing substantially in Vermont. We talk about other places it
    might go, and we will keep working on that.
        General Vaughn, we talk about the full-time personnel in
    the Army National Guard. I understand the requirements for
    full-time manning have not been reworked since well before
    September 11th when the Guard made up such a high percentage of
    the forces on the ground in Iraq and Afghanistan.
        Can you tell the subcommittee about the role the full-time
    personnel have in Guard units and what kind of requirement is
    there for additional full-time personnel?
        General Vaughn. Thank you, Senator Leahy.
        The full-time support piece, as you talked to, is based
    upon a 1999 strategic reserve model. We think it is out of date
    and we think it needs to be revamped. The Army is working that
    through a study. We think that readiness of our forces to move
    quickly, as you stated earlier, and do the things that the
    Governors and the President need demands that we have a higher
    level of full-time support. We have the capacity and capability
    to grow whatever it is that we are told to grow to. And we
    should grow.
        Senator Leahy. Thank you. Well, you have a sympathetic
    committee here on both sides of the aisle and I applaud all of
    you being here.
        Thank you, Mr. Chairman.
        Senator Stevens. Thank you.
        Senator Bond.
        Senator Bond. Thank you very much, Senator Stevens. And I
    join with my co-chairman, Senator Leahy, in expressing the
    confidence and the appreciation of the Guard. I welcome General
    Blum, General McKinley, General Vaughn.
        General Blum, thank you for your service. You work so well
    with the National Guard Caucus. We very much appreciate meeting
    with you regularly and we thank you for the good information.
        I would say by summary of what could be a long speech, that
    I really think the Guard is the most respected and capable
    organization we have. Every mission that our Nation has asked
    the Guard to execute, it has done so. Whether it is fighting
    terrorists in Iraq or Afghanistan, protecting the sovereign air
    space over the United States, securing the Southwest border,
    fighting the war on drugs through the counter-drug program,
    creating new futures for at-risk youth through Youth Challenge,
    or leveraging the Guard's civilian skills or ``smart power,''
    as I like to call it, the Guard has been and will be there.
        With respect to the Guard's smart power, General Vaughn, I
    appreciate your leadership in developing the National Guard
    agriculture development teams in Afghanistan. With roughly 80
    percent of the Afghan population depending upon agriculture,
    they will be training Afghans in sustainable agriculture and
    develop projects that will contribute to rural development.
        Would you give the committee an update on the ag
    development teams? Because I think this is a vitally important
    effort that was referenced, I believe, at least indirectly by
    Secretary Gates in his comments yesterday.
        General Vaughn. Thank you, Senator Bond.
        It plays right to the strength of what we do best and that
    is incorporate the States at every level, especially in a non-
    kinetic venture like this. It uses civilian acquired skills, of
    course, that being in this instance farmers. Now, that is kind
    of out of the box because it does not sound like a military
    solution. But it is aimed at the poppies. It is aimed at the
    plight of the farmers that simply need a better way of life,
    and it is about doing good in uniform.
        There are 10 agriculture soldiers from the State of
    Missouri. Missouri has been in the lead. We appreciate your
    great support. We appreciate the great support of Charles Cruz
    with the Farm Bureau. We looked at this and said, you know what
    we need to do is get some energy and support from the farming
    community of a State and link a State with a province. And that
    is exactly what we have done. It is a 50-person team. It has 10
    professional agriculture soldiers on it. The other 40 come from
    agriculture backgrounds. The State of Missouri has wrapped
    their arms completely around these soldiers. It is playing in
    the papers, as you well know. There is great interest in it,
    and they are deployed in Jalalabad today.
        The 82nd Airborne and the 101st have wrapped their arms
    around it, and as you know, there are other States now queued
    up ready to go. Texas is coming next, Nebraska, Tennessee,
    Alabama. I think there is a great deal of support for a non-
    kinetic solution at this time.
        Thank you, sir.
        Senator Bond. Thank you very much, General Vaughn. And here
    the Guard is really playing a lead. They have got 17th century
    agriculture, and with what the Guard can bring them in terms of
    know-how, not only training of farmers, but training the people
    who will be training the farmers, have the possibility of
    bringing them up at least a couple of centuries so they can be
    more self-sufficient. And I hope we continue to use that model.
        General McKinley, Senator Leahy, and I recently wrote you
    about the Air Force fifth generation TACAIR procurement
    strategy and the effect on the air sovereignty alert. We know
    the Air Force is facing billions in recapped costs and a 800-
    plus aircraft shortfall. Yet, despite the questions we have
    raised, they have refused to come up with a plan B to provide
    the equipment we need. With the number of F-22's capped at 183
    and the F-35 initial operating capability slipping and the cost
    going up, how does this impact the Air Guard's mission,
    particularly the ASA and other paramount flying missions? Where
    are you going to be in terms of aircraft in the very near
    future?
        General McKinley. Thank you, Senator Bond, for your
    advocacy and for your support of the air sovereignty alert
    mission.
        As you know, sir, we have 16 fighter units that presently
    sit alert over the United States of America. They all fly aging
    F-16 and F-15 aircraft. In fact, a unit in your home State, St.
    Louis, Missouri, lost an F-15 earlier this year, a catastrophic
    bulkhead failure. It shows the age of the aircraft.
        The plan B for us, sir, is to continue to extend these
    aircraft, to put modernization into them, but it is not going
    to solve the problem long-term because as early as fiscal year
    2015--General Blum and I have looked at this, and we have
    determined that at that early date, we will start attritting
    aircraft out of this fleet and we will be leaving the combatant
    commander of NORTHCOM unable to meet his requirements. General
    Blum and I are working very closely with the Air Force to make
    sure we do not have that bathtub, but today, as we look at it,
    there is a bathtub.
        Senator Bond. Would newly produced F-16's and F-15's at
    what, I might add, would be about one-third or less the cost or
    the F-22's enable you in the interim to fill that gap?
        General McKinley. Sir, you obviously know those are not in
    the Air Force procurement budget. But either one of those
    aircraft have served this Nation exceedingly well for the past
    20 to 30 years. And we need to modernize an air sovereignty
    alert fleet that can serve this Nation.
        Senator Bond. I believe in that, and I believe that plan B
    is a necessity.
        General Vaughn, let me finish up commending you and the
    Army Guard for pushing the top in recruiting with quality
    recruits. The Army National Guard has the Guard Recruiter
    Assistance Program, which serves as a model.
        Can you provide us an update on the Army Guard recruiting
    effort, and what, if any, are some of the challenges facing you
    for which you may need assistance?
        General Vaughn. Senator Bond, we have done great things. In
    the last 2\1/2\ years, we have grown 28,000 soldiers, and we
    recruit nearly 70,000 soldiers a year. As you referred to, we
    put into place a program that takes advantage of peer
    recruiting, uses our soldiers, incentivizes those soldiers to
    go out and recruit their communities and make their
    organizations to look just like them. You know, we go to
    school, church, play ball with every recruit that is out there.
    We are at 358,000 soldiers.
        The authorization through 2009 is 352,600. We were given
    authority from the Office of the Secretary of Defense to go
    ahead and not slow down this recruiting program that is
    attracting youngsters at a record rate to serve their country.
        And so General Blum mentioned something a while ago. We
    have a couple things going. We have got the equipment piece
    going in the right direction, which we have to monitor. We have
    the full-time support piece that we have to get to work on. The
    other piece is we have to have a serious debate about what the
    real end strength of the Army Guard should be because over
    history, as a dinosaur and as a system that is outdated, we
    have all of our training pipeline sunk into our units, which is
    the wrong thing to do. So we have to look at how much strength
    we really need in the future.
        Senator Bond. Thank you very much, General Vaughn.
        Senator Stevens. Thank you.
        Senator Mikulski.
        Senator Mikulski. Well, good morning, Generals, and thank
    you for both being here and for your service. And as always
    with the Guard, thank you for your candor and the willingness
    to tell it like it is. I appreciate the charts that you have
    given to us that actually identify your budgetary needs and
    where the base shortfalls are. It is rare that we get it and so
    straightforwardly.
        General Vaughn, it is great to see you at this table
    joining with our colleagues in the National Guard Caucus. We
    would like to see you at the Joint Chiefs table.
        But let me get right to my questions. First of all, to you,
    General Blum--my colleagues, General Blum is a fellow
    Marylander and we are very proud of him and his position in our
    military.
        But in the Yellow Ribbon reintegration program, I want to
    thank you for the fact that you furnished Maryland $1 million
    out of your discretionary funds to help with the Maryland
    reintegration program. As of April 1, over 1,000 Maryland
    guardsmen were serving in either Iraq or Afghanistan. Many are
    now on their way home. We wanted to operationalize the program.
    We are one of 15 States, but the civilian leadership at the
    Pentagon had failed to fund it. Your $1 million and Governor
    O'Malley, willing to step up for what is essentially a Federal
    responsibility, with $3 million, we have been able to do it.
        But I want you to know we had a roundtable with guardsmen
    and they are very grateful for what you were able to do, which
    takes me right to the Yellow Ribbon Program.
        We are going to put the money in the supplemental, thanks
    to Senators Inouye and Stevens, and we are looking to
    implementing it here. As I understand it, 15 States have a
    Yellow Ribbon Program. Of course, that means 35 do not. Do you
    anticipate that all 50 States will develop a program, and do
    you see that all 50 States need them?
        General Blum. Senator Mikulski, you are at the essence of a
    very critical issue. Every soldier that we deploy, every unit
    that we deploy and goes into harm's way has to be reintegrated.
    The first panel that was in here--you were spot on, right on
    target on what the needs are. General Stultz told you. We
    recruit soldiers. We retain families. To maintain those
    families, to even put them back to the way they were before the
    deployment requires a systematic reintegration process that
    heretofore we had not paid enough attention to.
        We have a pilot program with 15 States that is proving to
    be tremendously successful in encountering some of the concerns
    of Senator Murray and yourself as to the ill effects of the
    deployment on their families and the soldiers and how they
    reintegrate back into the workplace and into the household.
    Every single soldier and their family deserves this program.
        Now, if they are called by the Governors to do something in
    the State, then the State probably should bear the
    responsibility for that.
        Senator Mikulski. Right.
        General Blum. But when you are called in the Federal
    service of your country and you go overseas for a year, we owe
    them everything we would give any other soldier, airman,
    marine, or sailor in the Armed Forces. The fact that they
    happen to be guardsmen is irrelevant in my view.
        Senator Mikulski. So do I take that as a yes----
        General Blum. Yes.
        Senator Mikulski [continuing]. That you need 35 more?
        General Blum. Yes, ma'am.
        Senator Mikulski. And is the reason that we do not have 35
    more because the pilot did not work or is it a wallet issue? Is
    it a real issue?
        General Blum. It is a resource issue.
        Senator Mikulski. So it is a wallet issue.
        General Blum. The pilot worked magnificently well. As a
    matter of fact, right now I would say Minnesota is the gold
    standard. Maryland is right up there.
        Senator Mikulski. Yes. Do not start that.
        General Blum. Well, what I am saying----
        Senator Mikulski. We will all suit up and fight for our
    guardsmen.
        General Blum. What I am saying is that the States have
    really embraced this, taken it serious. The fact that Governor
    O'Malley would put that kind of money into that program out of
    the State coffers just to jump start it and make it possible is
    very commendable, but it should not be sustained that way.
        Senator Mikulski. So what you are saying is what we have
    now in the supplemental we anticipate will keep the programs
    going for 15, but we really need to face up to the fact that it
    should be integrated, that there should be this substantial
    list for all of the guard units coming home so that they would
    have parity with active duty on a reintegration program.
        General Blum. Yes, ma'am, absolutely. Clyde, do you want to
    add anything to that?
        General Vaughn. Senator, the Army has looked out there and
    seen this, and they have listened. And they integrated the
    family action plan by the Army which, unfortunately, because of
    the resource tail, it is a little further out. They have this
    program, Yellow Ribbon, in this integrated family action plan.
    And it has got to be resourced to make it happen. But they have
    seen the light, and they are working this very hard.
        Senator Mikulski. Let me go then to this. Do you have at
    the Guard really those who are looking at evaluating the
    program? And let us say what you have now is very good. What
    the Guard tells us, as we meet in family roundtables, is that
    when they come home, it is not a linear process. In other
    words, you have it very well sequenced, but some feel they do
    not need the services until maybe they have been home a year or
    they need it when they have been home for 3 months and it dawns
    on them they need it. Or they have assessed the family
    financial situation, and they find that they need a lot of
    counseling just in terms of getting out of debt.
        There are two things going on. One, an evaluation that 1
    year is not enough, that a guardsman can come in at any point?
    And number two is that really the reintegration program should
    have almost like an alumni association where they would
    periodically be able to come back for at least another year
    after they return home or before they deploy again because it
    is after they get home to get reintegrated. But then there is
    that undercurrent of anxiety of the redeployment. So you have
    got two significant dynamics going on in the family: one, to
    reintegrate and then the possibility of saying goodbye all over
    again.
        General Blum. If we are going to have an operational
    National Guard, which this Nation must have, with an All-
    Volunteer Force, the only way we can sustain the defense of our
    Nation right now is to optimize and operationalize the Reserve
    component. That includes the National Guard. If we are going to
    have repeated deployments, the conditions, the symptoms that
    manifest themselves come, as you well described, at irregular
    times. They are different for each person, and they really are
    cumulative. If you have deployed two and three and four times,
    the intensity of your symptoms and when they manifest
    themselves is different than if you go one time for a short
    deployment and come back.
        So we want to build as much flexibility in this program
    because we are looking to keeping soldiers and their families
    really for a continuum of service, basically as a career. We do
    not use our most precious resources to bring them in for one
    enlistment and then let them go out the door. We spend a lot of
    time and effort. They become more valuable to us with each
    passing day. We need to realize that in the programs that
    support and sustain these soldiers and their families.
        Senator Mikulski. Well, thank you very much. I know others
    have asked questions related to equipment and retention and so
    on. But thank you and thank all who serve as well. Thank you.
        Senator Stevens. Senator Murray.
        Senator Murray. Mr. Chairman, thank you very much and thank
    you to all of you for your tremendous service and those who
    serve under you and with you.
        I wanted to ask General Blum. I have been following the KC-
    X recapitalization effort. And in reading your prepared
    testimony and General McKinley's, I see that the Air Guard flew
    86 percent of the tanker sorties in Operation Iraqi Freedom and
    25 percent of tanker sorties in Operation Enduring Freedom.
    Pretty impressive. So considering that the Air Guard is very
    heavily involved in the operations of these mid-air refueling
    tankers, I am curious how much input you or your staff had in
    the KC-X recapitalization process.
        General Blum. The joint staff did not have any. Did the Air
    Guard staff?
        General McKinley. No, sir.
        General Blum. This is pretty much consistent with what
    General Bradley told you. It would not be normal that the Air
    Guard or the Air Force Reserve would participate in an
    acquisition action.
        Senator Murray. Even though you fly a large majority of the
    sorties.
        General Blum. Pardon?
        Senator Murray. Even though you fly the vast majority of
    the sorties.
        General Blum. Yes. But how new aircraft are acquired does
    not take into account the advice and consultation of the Chief
    of the Air Force Reserve or the Director of the Air National
    Guard.
        Senator Murray. I know that there are going to be
    associated costs with either the Boeing or the Airbus plane.
    But I want to know what impact the difference in size and
    weight of the two tankers would have on our future budgets. And
    there is a lot of costs associated with upgrades of hangars and
    ramps and taxiways.
        Has the National Guard conducted an evaluation of the
    construction costs for the various beddown locations?
        General Blum. That is ongoing. Do you want to handle this,
    General McKinley?
        General McKinley. That, Senator Murray, was done several
    years ago as a what-if drill because----
        Senator Murray. For both the larger tanker, Airbus tanker--
    --
        General McKinley. I would have to get that back to you for
    the record. I know we have looked at a larger aircraft tanker
    beddown for Milcon and hangar space. I know that. So I will get
    that to you for the record.
        Senator Murray. So you could provide me with the
    information on both of those planes and the costs?
        General McKinley. Yes, I can.
        Senator Murray. Okay, for the record. Thank you. I
    appreciate that.
        [The information follows:]

        As part of routine tabletop and internal ``what-if''
    planning drills conducted several years ago, my engineers
    verbally discussed with several Air National Guard (ANG) tanker
    wing commanders potential beddown issues such as facilities,
    ramp space and hangars for future recapitalization efforts.
        At the 20 ANG sites where tanker assets are currently
    based, we estimate the facility costs would be approximately
    $50 million to $275 million for the KC-45 and $50 million to
    $250 million for the Boeing aircraft depending on location. For
    example, at a notional ANG-only base, we estimate costs to be
    approximately $70 million for either aircraft selected. And, at
    a notional civilian location, costs range from $250 million to
    $275 million. These MILCON estimates will be used for potential
    ANG KC-X bases and are intended to assist in the Guard's
    initial planning for potential aircraft replacement. These
    estimates were not part of the Air Force's formal acquisition
    process.
        In coordinating this response, we were informed by the Air
    Force that part of the official KC-X Source Selection process,
    the Air Force calculated and took into consideration MILCON
    cost estimates for representative active duty CONUS/overseas
    locations, as well as sample Guard and Reserve bases. The Air
    Force conducted site surveys at several existing active duty
    tanker bases. These surveys were used as a basis for estimating
    MILCON costs for the Most Probable Life Cycle Cost (MPLCC)
    which would address ANG and overseas locations. It's important
    to note that MILCON cost estimates were not considered in
    isolation by the source selection team, but were included as a
    component of the MPLCC, accounting for approximately 2 percent
    of the total cost.
        When Air Mobility Command coordinates the final KC-45A
    beddown with the MAF and the plan is approved by Headquarters
    Air Force, the National Guard Bureau will lead the site survey
    processes at selected Guard locations. Initial MILCON cost
    estimates will be updated based on the specific requirements of
    each location. Local experts will be an integral part of the
    site survey team, as is the case with all site surveys.

        Senator Murray. And, General Blum, I wanted to ask you
    specifically your opinion on flying the Boeing 767. And the
    reason I am asking that is because shortly after the--well,
    within a day after the announcement of the procurement of the
    Airbus plane was made, Loren Thompson, who is with the
    Lexington Institute, released a paper extolling the benefits of
    the Airbus platform and hinting that somehow the Boeing plane
    was a lesser plane.
        Now, that was before we were given any kind of debriefing.
    Boeing was not given any kind of debriefing. I have been asking
    Secretary Wynne and General Moseley and even Secretary England
    how that could happen, and no one knows.
        But regardless of that, some of the misinformation from
    that analysis has left people wondering whether the 767 is a
    plane that your forces would be willing to fly. And I wanted to
    ask you specifically if you have an opinion about the Boeing
    767.
        General Blum. Well, I am probably the least qualified
    person to comment on that, but I think General McKinley could
    probably offer a more credible opinion on that.
        Senator Murray. General.
        General McKinley. Ma'am, we are under advice that while the
    contract is under protest, the order is under protest, that we
    are supposed to leave it at that.
        So all I can tell you is we have 17 great KC-135 units in
    the Air Guard. They fly great missions. They are looking for
    new equipment. That equipment is very old and needs to be
    replaced very badly.
        Senator Murray. Okay. Well, let me change directions a
    little bit.
        General Vaughn, I had a question for you. I know that the
    psychological issues for our men and women who are returning
    are something that you care about. And I saw that in February,
    the Army released the MHAT-5 report that had a number of
    findings. Some of them were them more positive; some were more
    troublesome. And I was pleased to see that the report said
    morale had increased throughout the ranks of the Army and that
    stigma had decreased for mental healthcare.
        But I was alarmed to see that the suicide rates for
    soldiers who were deployed to Iraq and Afghanistan were up.
    Additionally, that report found a significant increase in
    mental health problems for soldiers deployed to Afghanistan.
        Could you comment a little bit on whether this transition
    to heavy use of the National Guard and operational forces has
    had an impact and what you think we should be doing?
        General Vaughn. Thank you, Senator Murray. Yes, I think
    there is no question it has had an impact, and we are all
    disturbed by the numbers. But it is the stress that probably
    all of us, all services, find ourselves in today with the
    repeated use, and this is what the Nation has asked us to do.
        Now, how do we fix it and what things can we do? I think
    the thing that you may have alluded to--and I had a sister that
    has coached me for years in head injuries. So my concern, after
    the last couple of trips, was with all of the soldiers,
    sailors, airmen, and marines that had taken repeated blows and
    there were in incidents that we had no record of. And so I said
    when I look back at this in the Guard and Reserve especially,
    our soldiers come back and then they return to the civilian
    populace. They are not on active duty any longer. Rather than
    them having to come forward, why is it we cannot do something
    in the integration piece and at 30-, 60-, 90-day checks? And
    then you ask yourself, well, who is it that is going to be
    doing that?
        And when we look around, I think long-term, if we are
    looking at something that is kind of like the Agent Orange
    piece, you know, the Vietnam war, then we should have a
    database on all these soldiers who took these repeated blows in
    a blast or whatever it is, which is an operational nature. What
    I am saying is if they are hurt, they are already captured and
    in the personal side of the medical records, and that is
    protected. But if we did something operationally that said,
    when that soldier comes back for redeployment and if he goes
    through the demobilization station, perhaps the State needs to
    be there with us. Every State probably will handle this a
    little bit differently, but there are head injury counsels out
    there that I think ultimately are going to be kind of the case
    managers and folks that move them in various directions.
        I think our responsibility--and I have had this discussion
    with the hospitals in Afghanistan and Iraq and I have had this
    with the senior leadership in the Army. I think our
    responsibility is to accumulate that track record on each one
    of those soldiers.
        Senator Murray. And that is not being done currently?
        General Vaughn. Ma'am, that particular piece for the Army
    National Guard is not being done currently. And to me it is a
    command responsibility to report it in through chains and for
    us to be able to give it to our great adjutant generals out
    there and get it in to the interagency community of that State.
    And then we will figure out which direction they need to go.
        But rather than them swimming upstream with a stigma and
    saying I have a problem, we ought to know whether this soldier
    is likely to have a problem. And when they look at that, there
    is a database that says, oh, yes, you were this, this, this,
    and this. And that is what we are trying to work right now.
        It is an emotional issue to us, and we have tried to attack
    this, and we are going to keep pushing it. And we would like to
    have all the help we could get.
        Senator Murray. What are the barriers? What can Congress do
    to help you with that?
        General Vaughn. A barrier for us--and I will just be very
    open with this and ask the Chief to throw in, if he wants to. A
    barrier for us is the command relationships with our
    organizations that are deployed today. Our units are spread out
    over such a big area that if our brigades and the command
    relationships were in place where they had command and control
    and the reporting chains were all there, we could get them to
    report this data up through the chains to us. But as it is,
    they are segmented all over the place.
        This is going to take some work, and it will not just be
    Army and Air Guard and the other the Reserve components. It
    will also be the other active soldiers that do not go through
    the 20 years that are not really, really hurt that is going to
    come back into the State environment. So we need to take care
    of it for everyone for good.
        Senator Murray. General Blum, did you want to comment?
        General Blum. I would just add my solid support for that.
        What General Vaughn says is absolutely correct. It is a
    challenge for the Army Guard to document whether Specialist
    Winkowski has been exposed to one improvised explosive device
    (IED) or two IEDs or three IEDs. I do not know. His chain of
    command would know.
        Senator Murray. He just said two? You were exposed to two?
        General Blum. So that is two. That needs to be recorded
    someplace.
        Senator Murray. Was that recorded anywhere for you?
        Mr. Winkowski. I do not know.
        General Blum. He does not know and we do not know, but that
    is information that is very vital to know if we are going to
    understand what we----
        Senator Murray. Well, everything we are being told is that
    symptoms can occur 1 year, 2 years, 3 years later. I thought we
    were asking the question when soldiers came home if they had
    been in the vicinity of an IED. We are not doing that?
        General Vaughn. Ma'am, we are asking that question, but for
    all the right reasons, tough folks want to get home to their
    families, all these things, and plus they miss several of them.
    And then they ask the question, they say, oh, by the way, who
    else was in there with you? And so we need to be accumulating
    this for the soldiers.
        General Blum. Nobody is refusing to do it and nobody does
    not want to do it. We do not have a good system to do it yet.
    We are struggling to do this. This is hard to do for the active
    force. It is even more difficult for the Army National Guard
    because of the unintended consequences of breaking--the way we
    are employing our units today needs to be looked at hard.
    General Vaughn and I are working with Army leadership on this
    because one of the unintended consequences of the way we are
    desegregating our leadership from our units, once we send them
    overseas, in some cases makes what we are describing here an
    almost impossible task.
        So we are not condemning anyone, but this is a problem that
    we must address as senior leaders, and I think this is for the
    Army to fix for the soldiers. And when I am talking about the
    Army, I am talking about the total Army, active, guard, and
    reserve, soldiers I am talking about are active, guard, and
    reserve soldiers.
        Senator Murray. Well, thank you. I am way over my time.
    Thank you, Mr. Chairman.
        Senator Stevens. Thank you.
        Senator Cochran.
        Senator Cochran. Mr. Chairman, thank you.
        We are very proud of the fact that in Camp Shelby,
    Mississippi, near Hattiesburg there is a National Guard
    training facility. The Army has been there for quite a while,
    since World War II. As a matter of fact, Senator Inouye was
    sent there for initial Army training before he was deployed in
    World War II. So there is a rich tradition and heritage that we
    honor at Camp Shelby.
        Camp Shelby is now engaged in a total immersion training
    program where they have villages and buildings that resemble
    the facilities that you will encounter in the combat zones that
    we have been involved in Iraq and Afghanistan and other places
    around the world.
        The point I am making here is that just recently they had a
    tornado that came through there and tore up some of those
    buildings, damaged some of them severely. And we have asked for
    supplemental funding to repair those and restore those
    facilities so they can continue to be used.
        Is it the plan of the Army National Guard to continue to
    use Camp Shelby as a training facility for guardsmen who are
    being deployed?
        General Vaughn. Senator Cochran, absolutely. When you look
    at the premier facilities all the way around and what generates
    combat power, especially for our brigade combat teams, Shelby
    handles large formations. As you know from the museum out
    there, you can see who all has gone through there. It is just a
    fabulous place and we intend to put the kind of resources that
    it takes to continue to keep that going within our limited
    capabilities. But I also believe that the Army, the big Army,
    the total Army, stood up to do exactly that too. And all we
    need to know is whether something is amiss on that or not
    because we cannot afford for Shelby to be out of step with what
    we are doing today.
        Senator Cochran. Well, I am hopeful and I expect that we
    will include funds in the supplemental to be able to repair and
    put the facilities back in full operation.
        General Blum. Senator, I will take that question for the
    record, but it is my understanding that it has been done. But I
    want to make absolutely sure. And I think General Vaughn is
    right. I think that was done with Army funds. But we will take
    that for the record and we will get it back to you.
        Senator Cochran. Well, thank you very much.
        [The information follows:]

        To date, the Army National Guard has not received any
    federal funds to repair the damage to Camp Shelby caused by a
    tornado on March 4, 2008. This tornado caused extensive damage
    to facilities, including three barracks (36-soldiers capacity)
    and one latrine all of which had to be torn down due to safety
    concerns. The latrine facility was critical since it served a
    block of buildings and rendered them un-usable. The impact was
    a loss of capacity to house soldiers. Work-arounds were
    accomplished by immediate repair where possible, relocation of
    soldiers, and continued use of the minimally damaged buildings.
    One headquarters building and office facilities also incurred
    tornado damage. Emergency or temporary repairs have been
    performed on all facilities to mitigate immediate safety
    hazards. These repairs were completed by diverting scheduled
    maintenance and repair funds. Only the most critical of repairs
    were completed. Funding estimates to repair tornado damage
    include $11.5 million in Military Construction funds and
    $866,000 in Operations and Maintenance funds.

        Senator Cochran. Well, it is a high honor to be a host in
    Mississippi to such a good training facility. I remember when
    my son trained down there when he was in the 155th Combat
    Brigade, a tank platoon leader, in preparation of going to
    Kuwait to deal with that situation. He called me up and he
    said, Dad, I am not sure our training is going to be complete
    by the time that thing is over over there. I think I need to be
    transferred to a unit that is going. And I said, well, I cannot
    do anything about that. The Army knows where they want you. And
    he said, well, I will call Congressman Montgomery then.
        Well, one other thing that I just want to comment on and
    that is the recruiting and retention by the Army National
    Guard. It has been very impressive, particularly at a time when
    deployments to hostile areas and serious combat may be
    involved. I know your recruits have been deployed multiple
    times in support of our national security interests, and I want
    to commend you for the quality of the leadership you have
    provided to these men and women. We are very proud of them in
    our State and they continue to engage in training and are
    serving out their commitments. They are not dropping out. They
    are staying in.
        So at the time when the overall size of the Army Guard is
    growing, are you able to meet your retention goals nationwide?
    I know it is good in Mississippi.
        General Blum. I will let General Vaughn brag about this.
    This is a great success story.
        General Vaughn. Senator, we have met every goal. We set a
    retention factor of 18 percent across the Nation, and we are
    exceeding that. We are much younger than we have been because
    we are attracting so many youngsters, and they are obligors and
    they are staying.
        So attrition and recruiting--there are two elements of
    this: keeping the folks with you and taking care of them. And
    the biggest piece of that is that the community really, really
    shows their affection for them. Both sides of the aisle--you
    know, they are on the side of the soldiers. And they feel not
    like second-class or third-class citizens. They feel like
    first-class citizens. And our communities and Governors and
    congressional delegations have just taken wonderful care of
    these soldiers when they return.
        Senator Cochran. That is reassuring and good to hear. And I
    congratulate you for the great job you all are doing in making
    this happen. Leadership makes a difference.
        General McKinley, I know you are probably aware that the
    186th Air Refueling Wing currently flies KC-135 tankers out of
    Key Field in Meridian, Mississippi. In the base realignment and
    closure process in 2005, these aircraft were reassigned to
    another base. But the Air Force, as I understand it, is
    considering replacing those tankers with joint cargo aircraft,
    but it may not be in time to avoid a gap in the training that
    will be available to air guardsmen at Key Field.
        I would like for you to look into this and see if there is
    any way to reduce that gap or eliminate it if it can be done so
    that the training of highly qualified flight crews and
    maintenance personnel can continue with real-world missions
    assigned to Key Field.
        General McKinley. Thank you for that question, sir. You
    know we have experienced a lot of mission change as a result of
    base realignment. Meridian has a great history and a great
    record. General Blum has worked very closely with the
    leadership of the Air Force on finding this future mission
    which is the C-27. But we are looking collectively as the
    National Guard Bureau on how to bridge the gap between 2011 and
    2015 when those new aircraft come. So I will make sure we get
    back with you or your staff and let you know how we are
    progressing.
        General Blum. And, Senator, you need to know that the
    intent--and Senator Dorgan knows this well because we worked
    his issue early, starting about almost 3 years ago. We had to
    take out the oldest F-16s because of base realignment and
    closure (BRAC) out of North Dakota, and they were not going to
    get the C-27 aircraft in time for it not to be a gap. So we
    arranged a bridge mission for that unit, and we will do the
    same thing for Meridian.
        I have made a commitment to all of the adjutants general
    and Governors that we do not want--we want this to be like a
    relay race or a baton pass where we do not let go of the baton
    until someone has grabbed it. We do not want a gap and drop it.
    If we do that, it will be very costly in terms of recruiting,
    retention, and resources to reestablish that unit after it has
    been disestablished. So it would be much better to have a
    bridge mission to transition it from what it used to be to what
    it is going to be, and we are committed to doing that with you,
    as well as the other States.
        Senator Cochran. Thank you very much.
        Senator Stevens. Senator Domenici.
        Senator Domenici. It is nice seeing all three of you again.
        General Blum, last year a GAO report studied the National
    Guard domestic equipment requirements and readiness and
    indicated that the nondeployed Army National Guard forces in
    New Mexico did not rank very high. As you recall, they ranked
    the last in the Nation in equipment readiness with less than 40
    percent of the total amount of dual-use equipment they were
    authorized to have for warfighting missions.
        Since that report, it is my understanding that things are
    better. The dual-use equipment availability has increased to 61
    percent. According to your posture statement, it looks as if we
    are slowly going in the right direction. Is that correct?
        General Blum. Yes, sir, that is correct. And it is because
    of the extremely helpful assistance we got from this
    subcommittee and the Congress with the National Guard and
    Reserve equipment account. We were able to literally put the
    capability and the capacity exactly where we needed it. We were
    able to apply that $800 million that Congress appropriated and
    authorized last year for the National Guard and Reserve
    equipment account, and New Mexico was one of the beneficiaries.
    You are now at exactly the same as the national level. You are
    coming up at the same rising tide as the rest of the Nation.
        Senator Domenici. How does the 2009 budget request address
    this situation?
        General Blum. If additional resources or funds were made
    available, we could apply them to accelerate moving from the 60
    percent level or the mid-60 percent level where we are and we
    could probably increase that in terms of quantity and quality
    by a rough order of magnitude of 10 percent by next year, which
    I think is probably very useful to do.
        Senator Domenici. I do too.
        The National Guard's role in border security. General,
    again, Operation Jump Start will end this June. We really
    appreciate the fine work that was done by our guardsmen and
    women in supporting Department of Homeland Security (DHS) on
    the border security mission. I also want to thank you for your
    support of our communities and the law enforcement agencies
    with the counterdrug program.
        Can you tell us a little bit more about the National
    Guard's work as part of Operation Jump Start and its
    counterdrug work?
        General Blum. Those two are separate programs, Senator, as
    you well know, but they are somewhat related.
        Senator Domenici. Right.
        General Blum. Before Operation Jump Start ever happened, we
    were on the Southwest border for about 20 years largely through
    the counterdrug program. Lots of good things were done that
    have beneficial effect with some of the issues that the
    Governors and the President had to deal with with our
    international border and our State borders down there.
        Operation Jump Start was a limited operation that was only
    supposed to last 2 years and only funded and authorized for 2
    years. It will come to conclusion in July. We have met and
    exceeded everyone's expectations, the Governors', the
    President's. Everyone is happy with it and we will complete
    that mission at the end of July.
        That does not mean that you will not see the National Guard
    on the Southwest border of the United States. We were there in
    two legitimate ways for many years before Operation Jump Start,
    and I think we will probably be there for the foreseeable
    future, probably using those two programs again.
        One of them is the innovative readiness training program
    that is run out of the Department of Defense where all of the
    Reserve chiefs that were here this morning and us send our
    soldiers, sailors, airmen, and marines to go down there and
    actually practice and perfect their military skills in a way
    that is useful to also helping secure the border and improve
    the infrastructure along the border which helps secure the
    border.
        The second program is the counterdrug program. If the
    counterdrug program were fully authorized and fully funded, it
    could do even more than it is doing right now. And what it is
    doing right now has a very beneficial and synergistic effect
    for border security as well as interdicting illicit drugs and
    people that are trafficking through the border.
        Senator Domenici. General, are you saying that when Jump
    Start ends, there are still some programs, aside from just a
    general involvement, that will perhaps be used on the border
    until it is better taken care of by the fully operational
    Border Patrol activities?
        General Blum. I am not sure I would say it exactly that
    way. I am saying that the National Guard will be involved in
    the counterdrug program in California, New Mexico, Arizona, and
    Texas for sure even after Operation Jump Start is over. And I
    think you will see the Guard and Reserve specialized units,
    engineers, medical communications. The same people that you saw
    for 25 years in the past will probably return to that vicinity
    to do their training which has a synergistic beneficial effect
    as well. But it will not be Operation Jump Start. Jump Start
    was a very limited operation authorized for a specific purpose.
        Senator Domenici. A number of Governors on the border have
    officially asked us to extend Jump Start, and I do not know
    that that is going to happen. But the reason I am inquiring of
    you is what is it going to look like if Jump Start is not
    there. And my understanding is that in an ad hoc way you are
    still involved. You are asked to do things and you do them, but
    it will not be Jump Start.
        General Blum. I think that is an accurate and fair way to
    phrase it. I really do.
        Senator Domenici. Thank you very much.
        Senator Stevens. Senator Dorgan.
        Senator Dorgan. Well, thank you very much. I believe I am
    last, so I will be mercifully brief. You have had a long
    morning, and I have not been able to be at all of the hearing.
        But I wanted to ask just a couple of questions. One is
    about--well, first of all, I should thank all of you. I will be
    Saturday in Grand Forks, North Dakota, at a coming home
    ceremony for some soldiers that are on their way back from
    their mission in Afghanistan. And all of us do that frequently
    to thank soldiers and their families, especially their families
    who carry on while they are gone. It is always a source of
    great pride. So thanks to the men and women of the Guard and
    Reserve.
        The Air Guard units--particularly in Fargo, the Happy
    Hooligans, of course, are now flying Predators. I am told that
    the Air Guard Predator units are manned to operate one Predator
    unit 24 hours a day, 7 days a week. That is the way they are
    staffed. I am also told that they are now operating two orbits
    with essentially that same staffing. That is a substantial
    tempo for them. Can you tell me what the background is on that
    and will that be relieved at some point?
        General McKinley. Senator, thanks for your support.
    Secretary Gates has testified that the need for increasing ISR
    capability is very necessary. So he has asked the Chief of the
    National Guard Bureau and me to ramp up the training in the
    units that have the Predator in the Air National Guard, as a
    result of base realignment, to pick up the tempo to be fully
    mobilized to do as many airborne combat air patrols as possible
    to help the soldiers and marines on the ground.
        The Hooligans have stepped up in a great way, as well as
    our other units who fly the Predator.
        This mission will probably transition itself from MQ-1
    Predator to MQ-9 Reaper because it will give the combatant
    commander more fire power on the ground overseas. So that
    demand signal has been given. The North Dakota Air National
    Guard has stepped up. It is going to increase and I do not see
    this tempo lessening, Senator, for the foreseeable future.
        General Blum. The good news, Senator, is it works so well.
    The guys like Senator--I mean, Specialist--maybe a future
    Senator, but right now Specialist Winkowski--he depends on them
    greatly to identify who is placing the IEDs, where they are
    placed, who is manufacturing these vehicle-borne IEDs and
    ground-buried IEDs. In an unclassified setting, I will tell you
    they are enormously effective in saving the lives and reducing
    the suffering of our American soldiers deployed. So anything
    that we need to do to provide more orbits for the people in the
    field right now we are doing.
        Senator Dorgan. I had heard reported a statement by
    Secretary Gates. The way the report came out, it seemed to
    imply some concern about the Air Force. I think the Air Force
    and the Air Guard are involved in putting almost everything up
    that they have got and doing, I think, by all accounts of other
    services, a terrific job. I checked too and my understanding is
    that reporting is not exactly what the Secretary of Defense had
    in mind. I think the Secretary of Defense is, from my
    understanding, pleased with the tempo and the work done by both
    the Air Force and the Air Guard with respect to UAVs. This is a
    new part of the Air Force in many ways, used in a new way as
    well.
        I want to ask about the joint cargo aircraft because you
    talked about the bridge with Senator Cochran, I believe, on
    that issue. The budget documents that we have say the Air Force
    plans to buy 24 joint cargo aircraft between 2010 and 2013. And
    I think that there are a number of Guard units that are
    candidates to receive the joint cargo aircraft.
        Can you tell me what we will expect? I mean, we involved
    with you I think several years ago--3 years ago now. What do we
    expect with respect to the Air Guard in Fargo and the Happy
    Hooligans with this bridge mission?
        General McKinley. Chief, thanks. If I could just carve out
    the Air National Guard piece of this. Right now in the Air
    Force budget, there are 26 C-27s in the budget, and the
    allocation right now--we have six units that have been
    designated as receivers of those aircraft, thereby making the
    math easy for four planes per unit on the Air National Guard
    side. And General Vaughn, obviously, is going to get a tranche
    of airplanes for the Army National Guard.
        Senator Dorgan. I understand it then. I was trying to
    reflect those numbers in terms of what General Blum and I had
    talked about previously.
        Well, Mr. Chairman, I will perhaps submit some other
    questions.
        But again, I make one additional observation, and that is
    this. The National Guard has done just a terrific job. I do
    think that now, over a period of a number of years, 5 and going
    toward 6 years, that frankly we are using the National Guard in
    a way that was not previously intended. And that works for a
    while. I mean, you can move things around and units around. It
    will work for a while.
        But I do think that multiple, repeated deployments will--I
    think there is a huge price for that at some point because the
    National Guard is capable of it, but it is not constructed to
    do that. And I think my hope is, as I think the hope is of
    everybody in this Congress, we are able to extract ourselves
    from this war at some point soon. But I also hope that we
    understand, when we get back to more normal times, the specific
    mission of the National Guard.
        General Blum. Senator, if we do not change how we man the
    force with full-time manning and allow over-strength for the
    units for the part-time manning or the traditional guardsmen,
    if we do not equip the Guard to be an operational force and we
    do not resource them and train them to be an operational force,
    then what you said is exactly right. If we do those three
    things, I think we can sustain the volunteer force and the
    citizen soldier indefinitely, particularly if we are allowed to
    grow capacity so that we are not turning the units and the
    individual soldiers as fast as we are today.
        Senator Dorgan. But the short answer to that is we are not
    meeting those needs. There are shortfalls in the percentage of
    equipment that is necessary for the various units. We are
    regrettably not having the resources to make that full
    commitment.
        General Blum. We cannot do things the same old way and use
    the Guard in a whole new way and make it work and sustain it. I
    agree.
        Senator Dorgan. Well, I thank all three of you for your
    leadership.
        Mr. Chairman, thank you for your time.
        Senator Stevens. Thank you. Thank you very much.
        I have sort of restrained myself a little bit here on
    questions today. So I will submit most of the questions.
        But I do want to ask you two things. General McKinley, I am
    told the Alaska Air Guard has the second lowest manning level
    in the Air National Guard. And they are working with the Guard
    Bureau to try to find the personnel to support the C-17 mission
    that is coming there. What is the situation? Are we going to
    have the planes and no people to fly them?
        General McKinley. Sir, General Campbell and I are working a
    plan right now to make sure we put our main effort on the C-17.
    It is critical. It is vital to our Nation. There are ways for
    us to adjust manpower in Alaska. I will be coming to the Chief
    of the Bureau with several courses of action here shortly, but
    it is a high priority. In fact, we have a team in Alaska today
    working those manpower issues with the adjutant general. So I
    share your concern. We are looking for ways to solve those
    issues, and I think we will be able to alleviate the stress.
        Senator Stevens. Well, General Blum, when I asked General
    Campbell about it, my staff and I, we were told there is a
    concept of cross-balancing manpower. Now what is that? I do not
    understand that.
        General McKinley. What we need--and it is an Air Force
    term. What we are looking for is a balance of possibly active
    duty manpower working with Guard manpower to alleviate the
    immediate shortfalls. Working with General Lichte at Air
    Mobility Command, we are looking at all those options. And I
    have not brought to the Chief what our courses of action are,
    but believe me, it is number one on my list.
        Senator Stevens. We are planned to move the Guard unit onto
    Elmendorf Air Force Base. Will that assist at all in this
    concept?
        General McKinley. Well, as you know, sir, that move from
    Kulis to Elmendorf is as a unit, and it has integrity of its
    own right. And we cannot rob manpower from it or we will have a
    similar crisis with another unit. So I think as I bring these
    courses of action to General Blum, we will give several ways to
    remediate this and then we will pass them on and make sure they
    are coordinated with General Campbell.
        Senator Stevens. Okay.
        General Vaughn, I am told that Alaska Army National Guard
    recently transformed the 207th Infantry Group to the 297th
    Battlefield Surveillance Brigade. Now, can you tell us how this
    new mission will improve the role of the Guard as far as its
    support capabilities?
        General Vaughn. Absolutely, Senator. The battlefield
    surveillance brigades are very needed and valuable
    organizations. They have a military intelligence capability but
    they have a scout capability that fits a lot of the kinds of
    structure that we originally had up with the famous 207th Scout
    Group. And so when we looked at the conversion piece, because
    it is a brigade level formation, we looked at it and we thought
    that fits pretty well. That fits Alaska. We talked to the
    adjutant general of Alaska and everybody agreed with that. And
    I think it is a phenomenal piece of structure.
        General Blum. It is a much more capable unit, Senator
    Stevens, and it places strength that has historically been
    demonstrated by Alaska Army Guard. We did the same thing in my
    home State of Maryland, taking the infantry brigade and turning
    it into a battlefield surveillance brigade, far more useful to
    the Governor and far more useful to the United States Army.
    They are a modern, 21st century capability. They really are.
        Senator Stevens. As I said, I have got a bunch of
    questions. I will submit them.
        Let me ask you just generally. How is recruitment and
    retention in our State in Alaska?
        General Vaughn. Excellent. Senator, recruitment and
    retention in Alaska pretty much goes the same all the way
    across the Nation. It is the same phenomenon of youngsters
    stepping forward to serve their country. But it is excellent.
    They are doing great. I was concerned a couple of years back,
    and I think we have just done wonderful.
        Senator Stevens. I was told that one of the units
    reenlisted 100 percent. Is that correct?
        General Vaughn. That is correct. We had some time to visit
    some units that were doing some phenomenal things in
    Afghanistan, for instance, and it just makes you so proud to
    see, regardless of where they are from. But they reenlisted 100
    percent of their soldiers.
        Senator Stevens. Thank you.
        General Blum. When the history of Afghanistan is written
    and brought up to currency, you are going to be quite proud of
    what the Alaska Army National Guard did, particularly down in
    Kandahar. The City of Kandahar may be in the right hands today
    because of the Alaska Army National Guard's contribution,
    frankly.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Stevens. Well, thank you. I am going to see them
    soon. I will be happy to pass on your comments, General.
        We thank you, General Blum, General Vaughn, and General
    McKinley, for your testimony. I thank everyone today for their
    cooperation.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
           Questions Submitted to Lieutenant General Clyde A. Vaughn
                Questions Submitted by Senator Daniel K. Inouye
                     army national guard: ``active first''
        Question. General Vaughn, the Army National Guard has initiated a
    new recruiting program called ``Active First'' which targets new
    recruits who would serve on active duty for a period of time, and then
    transfer to the Army National Guard. Participants can receive bonuses
    of up to $60,000 depending on the length of their commitment. How is
    this program coming along?
        Answer. The program is moving ahead of schedule. Our fiscal year
    2008 goal was to provide the Army with 1,600 Soldiers. We are on target
    and should have these Soldiers transitioned on or before September 1,
    2008. The program kicked off on October 1, 2007 and the first Soldier
    completed his Initial Entry Training (IET) and transition into the
    Active Army was on February 22, 2008. As of June 3, 2008, 86 Soldiers
    have completed their IET and transitioned into the Active Army. There
    have been 1,923 Active First enlistments with 1476 scheduled to access
    into the Active Army.
        Question. Is it meeting expectations?
        Answer. Yes. In order to fully evaluate if the program is meeting
    complete long term expectations, we must wait until the Soldiers return
    to the Army National Guard (ARNG). The program has two expectations:
    one is service in the Active Army and the second is to return as a
    drilling member of the ARNG. The program is unique in that the Soldier
    enlists for eight years without the ability to go into the Individual
    Ready Reserve (IRR). The Soldier must either return to a drilling unit
    in the ARNG or reenlist in the Active Army. Our expectation is that
    between 65 to 70 percent will return to an ARNG unit.
        Question. The Army National Guard has initiated a new program
    called ``Active First'' which is designed to fill up its ranks with
    prior service Soldiers.
        Recruits who enlist under this program serve in the National Guard
    until they complete their initial entry training (basic training and
    job training) and are then transferred to the Army for active duty for
    the time period specified in their enlistment contract (30, 36 or 48
    months). After their active duty period, then can either re-enlist on
    active duty, or serve the remainder of the obligated service in the
    Army National Guard.
        In the past, many Soldiers traditionally enlisted in the Army
    National Guard after serving on active duty. In fact, in years past,
    the Army National Guard got more than 60 percent of their new enlistees
    from prior service Soldiers. However, in the past five years, this
    percentage has dropped by half, most likely because National Guard
    units deploy much more often these days.
        National Guard officials hope this new program will recruit as many
    as 2,000 Soldiers, and expect to see as many as 1,400 of them return to
    the Guard after their active duty period.
        General Vaughn, what factors led to this program being developed
    and offered to new recruits?
        Answer. There were several factors that led to the development of
    the Active First recruiting program. First, the Army National Guard
    (ARNG) was exceeding our end-strength goals and beginning to reach our
    Congressionally-mandated ceiling. This was a means to continue the
    recruiting momentum and also provide a cost-effective means to help the
    Active Component in attaining their ``Grow the Army'' objectives. The
    word ``cost-effective'' is used because the costs associated with the
    program were primarily an opportunity cost. The ARNG managed to recruit
    the Active First Soldiers without adding any additional resources to
    our manpower or to the Army training base. This is of great benefit to
    the taxpayer because the single greatest cost associated with
    recruiting is the expense of our full-time recruiting force, of which
    the ARNG did not add any additional recruiters.
        Secondly, this program supports the continuum of service that the
    Army is trying to attain. Our formations will benefit from the
    experience an Active First Soldier will bring back to the ARNG when
    they return from the Active Component. By allowing our applicants to
    select a choice of going Active First we are also building a future
    base of Soldiers that will return to their communities already duty
    qualified.
                       army national guard--end strength
        Question. General Vaughn, the Army Guard plans to finish fiscal
    year 2008 with 358,200 guardsmen. This is 7,000 more than budgeted and
    is equal to the entire end strength growth planned for the Army Guard.
    Does the Guard intend to continue growing in fiscal year 2009?
        Answer. The Army National Guard (ARNG) has clearly demonstrated the
    ability to grow beyond 358,200 Guardsmen. The Department of Defense
    authorized the ARNG to grow beyond the fiscal year 2008 351,300
    congressionally-authorized and budgeted end strength in accordance with
    the ``Accelerated Grow the Army'' plan supported with the Office of the
    Secretary of Defense-directed reprogramming and supplemental funding.
    This increased authorization leverages the demonstrated momentum of the
    ARNG recruiting force to meet mission manning and readiness
    requirements to support a nation in an era of persist conflict. The
    sustainment of this end strength above the approved Grow the Army ramp
    of 358,200 in fiscal year 2013 is tied directly to continued
    supplemental funding as are each of the other Army components Grow the
    Army plans. To continue to leverage the momentum demonstrated by the
    ARNG, additional funding via supplemental budgets, while substantiating
    the current authorization (358,200) in the base appropriation is
    required.
        As the ARNG Force Structure Allowance (FSA) approaches steady state
    of 358,000 in fiscal years 2010 and 2011, continued end strength growth
    beyond 358,200 will permit the ARNG to address the challenge of having
    the ARNG training pipeline embedded within the operating strength.
    Creating a ``Recruit Sustainment Program'' for end strength above the
    FSA, similar to the Trainees, Transients, Holdees, and Students (TTHS)
    personnel accounts presently in the other Army service components, will
    allow the ARNG to fill the entire operating force with trained
    deployable soldiers to meet mobilization readiness requirements and
    support the transition of the ARNG to an Operational Reserve.
        Question. And how does the Guard plan to pay for the additional
    guardsmen recruited this year?
        Answer. The current level of Army National Guard (ARNG) bonus
    execution at $700 million includes contractual payments for student
    loans, statutory anniversary payments for prior-year accessions,
    critical wartime medical bonuses, and foreign language incentives. To
    resource both non-discretionary bonus payments and to support new
    incentive programs authorized by Congress, the ARNG implements cost
    controls to pinpoint bonuses to force shaping requirements.
        fiscal year 2005 was the first year the ARNG received supplemental
    Recruiting and Retention (R&R) funding and by the beginning of fiscal
    year 2006 those funds along with new recruiting strategies began to pay
    off. Since supplemental funding began the ARNG has demonstrated a
    unique ability to grow its end strength. In fiscal year 2006 the ARNG
    recruited over 19,000 more Soldiers than it did in fiscal year 2005,
    demonstrating that when resourced, the ARNG can meet its recruitment
    and retention targets in a wartime environment. With the recruiting
    successes, both the dollar bonus amounts and eligible recruiting
    populations have increased due to congressional support. In order to
    maintain our current momentum and achieve accession targets at 65,000
    per year, recruiting bonuses must be fully funded to support an
    operational end strength sustainment environment.
        ARNG recruiting bonus costs will maintain a steady state to fiscal
    year 2007 spending. ARNG bonus program growth levels off at fiscal year
    2007 spending after recent National Defense Authorization Act bonus
    amount increases. We do not project a significant increase in bonus
    takers in out-years. It is significant to note that the ARNG requested
    bonus costs for the Program Objective Memorandum 2010-15 are 60 percent
    less than the active component cost for approximately the same number
    of recruits (65,000 vice 71,000).
        Question. The Army's Grow the Force plan had the Army Guard
    increasing by 1,300 soldiers per year. The Guard's actual end strength
    growth has far exceeded the budgeted Grow the Force plan. The Guard
    expects to finish fiscal year 2008 with at least 358,200, which is
    7,000 more soldiers than budgeted and equal to the Guard's final end
    strength under the Grow the Force initiative. The Guard will not say
    whether they plan to keep growing.
        To achieve this growth the Army Guard continues to spend large sums
    of money on recruiting. In fiscal year 2007, the Army Guard spent $417
    million on recruiting bonuses out of a $7 billion military personnel
    budget. In fiscal year 2008, the Guard is planning to spend $720
    million on recruiting bonuses. In fiscal year 2009, the Guard has
    requested $373 million with presumably a large request in the
    supplemental.
        The Army Guard has not yet provided an estimate of the cost of
    these additional personnel in fiscal year 2009. In fiscal year 2008,
    the additional personnel costs are minimal because most recruits are
    still awaiting basic training.
        General Vaughn, after falling short of recruiting goals in fiscal
    year 2005, the Army Guard has turned around its recruiting efforts but,
    to achieve this, the Guard is spending over $700 million per year on
    recruiting bonuses. Are you concerned that this cost is unsustainable?
        Answer. The success of the Army National Guard (ARNG) recruiting
    program is a direct result of a whole program approach. While bonuses
    and other monetary incentives are a significant part of the program, so
    is our innovative marketing and cutting edge recruiting philosophy.
        The current level of ARNG bonus execution at $700 million includes
    contractual payments for student loans, statutory anniversary payments
    for prior-year accessions, critical wartime medical bonuses, and
    foreign language incentives. To resource both non-discretionary bonus
    payments and to support new incentive programs authorized by congress,
    the ARNG implements cost controls to pinpoint bonuses to force shaping
    requirements.
        ARNG recruiting bonus costs will maintain a steady state to fiscal
    year 2007 spending. ARNG bonus program growth levels off at fiscal year
    2007 spending after recent National Defense Authorization Act bonus
    amount increases. We do not project a significant increase in bonus
    takers in out-years. It is significant to note that the ARNG requested
    bonus costs for the Program Objective Memorandum 2010-15 are 60 percent
    less than the active component cost for approximately the same number
    of recruits (65,000 vice 71,000).
                                     ______

                Question Submitted by Senator Richard J. Durbin
                                 blast injuries
        Question. Veterans from Iraq and Afghanistan are coming home with
    higher rates of traumatic brain injuries (TBI), post-traumatic stress
    disorder (PTSD), and depression, among other physical and mental
    wounds. One in five suffers from TBI. One in five suffers from PTSD. I
    introduced TBI legislation last year that was enacted as part of the
    Wounded Warriors title in the fiscal year 2008 Defense Authorization
    Act that requires routine brain injury screening tests for military
    personnel. I was disturbed to learn that the Army National Guard is not
    tracking soldiers' exposure to blasts in Iraq. This information would
    be very valuable in assessing and treating TBI in returning service
    members.
        To what extent do you plan to track the incidence of blasts
    soldiers are exposed on the battlefield?
        Answer. The Army National Guard (ARNG) plans to be as proactive in
    this critical area as possible and we thank you for asking the
    question. The ARNG is currently developing and executing a reporting
    process to identify and track all blast exposed Soldiers. The intent is
    to track every Soldier immediately after the event occurs. This system
    will not be tracking Soldiers that have been seen by the medical system
    as they are fully covered and cared for. The Soldiers we will track
    have been exposed to these events (some multiple), not sought medical
    care, and may be at risk for future medical problems both while in
    theatre and after redeployment due to the event. Following up with
    these particular Soldiers will allow for early identification of
    potentially related issues to include traumatic brain injury and post-
    traumatic stress disorder and aid in providing needed support to all
    Soldiers, Families, and Employers.
        The result will enable the force to more accurately forecast the
    potential needs related to services in the future. The ARNG will be
    able to identify trends in blast exposure and their impact on Soldiers
    and Families and the force and what programs may be needed their
    futures.
        I have directed all deployed ARNG units to collect and report data
    on Soldiers exposed to blasts. Commanders will have the discretion to
    determine which Soldiers should be included based on their proximity to
    the blast. The intent is to capture data on Soldiers that do not seek
    immediate medical treatment, but may have been impacted by the blast.
    This data will be used to follow up with individually impacted Soldiers
    in theatre and will be maintained in an ARNG database that will be
    provided to states upon redeployment of ARNG units. States will partner
    with appropriate civilian agencies to provide Soldiers with needed
    services, but at a minimum will follow up with Soldiers during the 30,
    60 and 90 day reintegration events.
                                     ______

            Questions Submitted to Lieutenant General H Steven Blum
                Questions Submitted by Senator Daniel K. Inouye
                            civil support readiness
        Question. General Blum, recent GAO reports have addressed the
    Guard's readiness for civil support missions. According to GAO, the
    Guard is resourced and prepared for average state level events but does
    not have adequate guidance nor planning for a medium to large scale,
    multi-state domestic emergency. What is the Guard doing to improve its
    preparation for these types of events?
        Answer. The National Guard is improving its preparation for
    responding to a medium to large scale, multi-state domestic emergencies
    by conducting exercises titled ``Vigilant Guard'' which reinforces that
    all incidents are local. These exercises demonstrate the capabilities
    of the National Guard Joint Force Headquarters and the Emergency
    Management Assistance Compact--a process where Governors reach out to
    other Governors for more assistance. Specific National Guard homeland
    defense capabilities include the National Guard Reaction Forces,
    Weapons of Mass Destruction (WMD) Civil Support Teams and the Chemical,
    Biological, Radiological and Nuclear Enhanced Response Package teams.
        States that have participated in Vigilant Guard Exercises include
    Tennessee, Missouri, Georgia, Illinois, Indiana, South Carolina,
    Florida, Virginia, North Carolina, and Ohio. States planning to
    participate in future Vigilant Guard Exercises include Hawaii, Nevada,
    California, Guam and Iowa.
        The National Guard Bureau also participates in the National Level
    Exercises (e.g. NORTHCOM sponsored Ardent Sentry), which exercises
    continuity capabilities to include the National Essential Functions,
    Federal Government Essential Functions and to manage emergency from
    dispersed locations. Previous exercises focused on exercising hurricane
    preparedness, response capabilities and responding to terrorist WMD
    threat/attack, to include the integration of Defense Support of Civil
    Authorities.
        These tactical, operational and strategic level exercises allow the
    states and the National Guard Bureau opportunities to capture lessons
    learned in order to improve the processes in which the states plan,
    respond, as well as coordinate additional capabilities and resources
    from other states.
        Question. A recent GAO survey of state adjutant generals (TAGs),
    reported that many TAGs were greatly concerned about their state's
    ability to respond to a medium to large scale, multi-state incident
    while they felt comfortable that their state guard had adequate
    planning and resources to respond to a typical state-level disaster.
    According to GAO, the U.S. government has not adequately planned for
    medium to large scale disasters that require multi-state involvement.
    For this reason, the Department of Defense and National Guard Bureau do
    not have clear guidance as to their roles in these types of events and
    are limited in their ability to plan and equip for these events.
        Detailed state-level emergency response plans exist and help the
    TAGs in planning and equipping for state missions but there is no
    standardized method to track civil support readiness for larger events
    because there is no required table of equipment nor training for civil
    support missions.
        The National Guard Bureau has identified significant Army and Air
    Guard shortfalls in dual-use equipment. These are items that are part
    of the required list of war-fighting equipment but also have civil
    support applications. The Guard estimates the cost to completely
    eliminate this equipment shortfall as $10 billion for the Army Guard
    and $2.5 billion for the Air Guard. However, without clear guidance as
    to the Guard's responsibilities during a multi-state event, it is
    unclear if this equipment requirement is accurate.
        General Blum, GAO has reported that the Guard has not been provided
    with clear guidance on its responsibilities during a medium to large
    scale disaster or other incident. Without this guidance, how does the
    Guard assess its dual-use equipment requirements and prioritize its
    equipment requests?
        Answer. Assessing National Guard Readiness for Domestic Operations
    is a function of understanding the requirement, the required
    capabilities and enablers and management systems for data collection,
    analysis, reporting and information sharing with stake-holders. I have
    asked all 54 State Adjutants General/Commanders to develop a written
    ``Joint Combined State Strategic Plan'' that addresses state-specific
    goals and objectives while allowing supporting entities, such as the
    National Guard Bureau (NGB), to have a clear picture of each state's
    external needs. Those assessments are then input to the Joint
    Capabilities Database (JCD). The current authoritative Department of
    Defense (DOD) readiness reporting system, the Global Status of
    Resources and Training System, does not presently assess homeland
    defense missions or emergency response equipment requests by the
    Governors.
        NGB is working closely with the Office of the Under Secretary of
    Defense for Personnel and Readiness as DOD transitions to the new
    Defense Readiness Reporting System to ensure the functionality of our
    JCD is incorporated. The JCD is a complimentary, unclassified, separate
    and unique system of evaluating every state's preparedness for National
    Guard Domestic Operations (NGDO). The JCD captures the readiness of the
    National Guard of every state and territory for Domestic Operations
    missions at two levels: (1) to respond to the most frequent NGDO
    missions experienced over the last ten years, and (2) to respond to
    major catastrophic incidents as articulated in the National Planning
    Scenarios. From this assessment, we've become aware that dual-use
    equipping levels vary from state to state. NGB continues to work
    closely with each state and DOD to ensure critical equipment is pre-
    positioned at the optimum locations to ensure maximum effective
    response. If it is in the National Guard, and the Governor needs it,
    they will get it either through national-level coordination efforts or
    through pre-existing state to state Emergency Management Assistance
    Compacts.
                            light utility helicopter
        Question. General Blum, the Army National Guard is slated to
    receive the majority of the new Light Utility Helicopter. However, the
    rising price of that helicopter means that fewer are being requested in
    the President's budget. What effect will slowing the fielding of the
    Light Utility Helicopter have on National Guard homeland defense
    missions?
        Answer. The effect of slowing the fielding of Light Utility
    Helicopter (LUH) (UH-72A Lakota) to the Army National Guard (ARNG)
    would be significant with respect to ARNG aviation support to homeland
    defense missions. However, the Army has ensured the ARNG remains
    positioned early in the Army's overall LUH fielding plan and the
    expectation is that early ARNG LUH fielding will remain true. Required
    aircraft modifications caused some small aircraft quantities to be
    shifted to the out-years, but the Army is addressing those minor
    modifications in the current fiscal years 2010-15 Program Objective
    Memorandum. Additionally, the Army is working to achieve maximum
    production rate within the LUH program. The Security and Support
    Helicopter Battalions (SSHBNs) are currently operating aging legacy OH-
    58A/C aircraft. The UH-72A modernizes the SSHBNs and provides an
    enhanced aviation platform to conduct security, support and medical
    evacuation aviation missions and thus better support the National
    Guard's homeland defense requirements.
        Question. The Light Utility Helicopter, or UH-72A Lakota, is a
    commercial helicopter that has been adapted for military use within the
    United States. Its primary missions relate to homeland defense,
    medivac, and movement of small numbers of personnel. The LUH is
    intended to fill these missions in areas with no risk of combat, so
    that the larger, more expensive, and battle-ready Black Hawks can be
    freed up for deployment overseas.
        The price of each LUH rose from $5.3 million to $6.2 million this
    year after early tests found a need to upgrade various equipment. This
    cost growth has reduced the rate at which the Army is procuring the
    helicopters.
        General Blum, the Army National Guard has identified four major
    aviation modernization or upgrade programs: the Light Utility
    Helicopter, the Black Hawk, the Chinook, and most recently, the Apache
    conversions. Since budgets are always limited, how would you prioritize
    those programs?
        Answer. As over 40 percent of the Army's Modified Table of
    Organization and Equipment (MTOE) requirement for helicopters resides
    in the Army National Guard, our reserve component units represent a
    significant portion of the Army's aviation forces available to meet
    National Security challenges. Each of the programs that you mention has
    a distinct and important part in the long-term capabilities of the
    Guard to provide aviation support to the current and future
    warfighters. Because of the discreet mission sets that each of these
    platforms perform it's difficult to put them in a clean-cut prioritized
    list; however, here are the compelling needs for these platforms in the
    order in which they should be addressed.
        The Army National Guard (ARNG) is short more than 18 percent of the
    CH-47s required by our reserve component MTOE units, the largest
    shortage within the National Guard aviation community. While this
    aircraft continues to be in high demand due to its ability to perform a
    myriad of missions in all environments, the ARNG must find ways to fill
    these holes. Additionally, these shortages are exacerbated in the short
    term by the need to take a CH-47D from a unit and induct it into the
    production line to create a CH-47F.
        Four of the eight battalions in the ARNG AH-64 fleet are well on
    their way to being modernized. They are in the process of receiving AH-
    64Ds and will then be available for sourcing to the warfight. The
    remaining four battalions need to be accelerated in their modernization
    so that they, too, can be added to the pool of attack helicopter units
    available for utilization in the current fight. The attack community is
    heavily deployed and utilized and these additional assets will
    contribute significantly to our ability to provide aviation formations
    in the future.
        The UH-60 fleet is the largest fleet in the ARNG, but also has the
    most holes in our formations being 113 aircraft short which represents
    over 14 percent of its required numbers. The Blackhawks needed by the
    ARNG predominantly reside within the MEDEVAC community as we try to
    grow the number of MEDEVAC units available for today's deployments.
    Additionally, as the UH-60As first entered service in the late 1970s,
    the modernization of this fleet to UH-60Ls and UH-60Ms is an important
    piece of the ARNG's ability to provide relevant aviation support into
    the future.
        When one talks of ARNG aviation, it's difficult to do so without
    talking about the Joint Cargo Aircraft. It's a critical piece of the
    entire modernization strategy for ARNG aviation and Army aviation in
    general. It is the capabilities of the C-27J that will provide critical
    logistical support for ground commanders well into the future. It is
    also the platform that will provide the ability to divest our 1980
    vintage C-23s and keep this cargo fleet viable well into the 2020s and
    beyond.
        The Light Utility Helicopter (LUH) is the cornerstone of National
    Guard aviation transformation as it has enabled the ARNG to create S&S
    battalions within their Aviation Brigade structure. Its ability to
    satisfy both general support and MEDEVAC aviation missions in
    permissive environments has afforded the Army the opportunity to
    cascade UH-60s to the ARNG in support of the warfight and will also
    enable the Army to divest the remaining legacy aircraft (UH-1s and OH-
    58A/Cs).
                                     ______

          Questions Submitted to Lieutenant General Craig R. McKinley
                 Question Submitted by Senator Daniel K. Inouye
                               force realignments
        Question. General McKinley, the Air Guard is undergoing significant
    force structure adjustments as a result of the Total Force Integration
    and BRAC. Many bases have been closed and many units have been assigned
    new missions. These realignments mean that many airmen are being asked
    to either retrain on new equipment, or worse to uproot their families
    and leave their civilian jobs to follow their unit to a new location. I
    understand that this is creating significant challenges in training
    capacity and retention. How is the Air Guard addressing these issues?
    Has the Air Force been supportive in providing the training spaces
    needed to re-train the large number of airmen who have new missions?
    Background
        The Air Force is undergoing significant force structure
    adjustments. As part of the Total Force Integration plan, the Air
    National Guard is working to pool equipment and personnel resources
    with the active Air Force to maintain capabilities at a lower cost by
    associating a reserve unit and active unit with the same set of
    equipment. At this same time, the BRAC Commission realigned Air Force
    assets at over 100 facilities, recommending some bases close and others
    realign equipment and personnel. These changes affect 60 percent of all
    Air Guard units.
        Another significant challenge, as reported by GAO in May 2007, is
    finding a sufficient amount of training spaces and funding to re-train
    the large number of airmen who are changing missions. There are also
    concerns with morale as personnel are required to train on new
    equipment mid-career, or worse, to temporarily train on equipment for a
    gap mission only to have to retrain again when the new equipment comes
    on line. To date, the effects on retention have varied by unit.
        Retention levels may have remained strong due to a significant
    increase in bonuses. In fiscal year 2006, the Guard spent $29.5 million
    on re-enlistment bonuses while in fiscal year 2007 the level increased
    to $45.5 million. Fiscal year 2008 projections are comparable to fiscal
    year 2007 levels.
        General McKinley, you have greatly increased the amount of money
    spent on reenlistment bonuses in the last two years. The fiscal year
    2009 budget reverses that trend, requesting only a third of current
    levels. With the retention challenges you are facing, why wasn't more
    funding requested?
        Answer. The Air National Guard faces many budget challenges in
    fiscal year 2009, including recruiting and retention. We recognize the
    level of risk the budget request reflects and are counting on our
    leadership at the unit level as well as the flexibility within the
    budget execution year to continue to help us in the area of retention.
        Due to the importance of achieving retention and recruiting goals,
    often funds are reprogrammed from other programs to address additional
    funding requirements. Unfortunately, we must assume risk in other
    programs to meet the challenges of sustaining a viable reenlistment
    program.
                                     ______

                Questions Submitted by Senator Pete V. Domenici
                          new mexico ang f-16 upgrades
        Question. The 150th Fighter Wing at Kirtland Air Force Base has a
    proud heritage as part of the Air National Guard. The 150th used to fly
    Block 40 F-16s, but gave them to the Active Duty force to assist in
    meeting mission priorities. Now the 150th flies Block 30 F-16s, which
    will soon be retired.
        Has there been any thought given to upgrading the Block 30 F-16s
    such as those used by the 150th to enable them to continue providing
    their outstanding service to New Mexico and the United States? What
    type of upgrades?
        Answer. Yes. A portion of the 150th Fighter Wing's F-16 Block 30
    aircraft recently received upgraded radios prior to deployment in
    support of Operation Iraqi Freedom. The Air Force, Air National Guard,
    and Air Force Reserve Command are pursuing the completion of this
    modification for all combat coded Block 30 aircraft. Additionally, the
    150th Fighter Wing's F-16s are fully funded for replacement of the
    aging video tape recording system with a digital video recorder,
    greatly enhancing training effectiveness and post-mission assessment.
    Software releases currently in development will enable employment of
    new weapons such as the small diameter bomb. Numerous hardware
    modification programs for the F-16 Block 30 fleet are detailed in the
    Air National Guard's 2009 Weapons System Modernization Book. These
    efforts include upgraded fire control computers with ethernet
    connections, helmet mounted cueing systems, advanced targeting pod
    improvements, digital radar warning receivers, advanced line-of-sight
    and beyond line-of-sight radios, improved color displays capable of
    image transfer, and advanced interrogators for identification of
    friendly, suspect, and enemy aircraft. With adequate funding, these
    upgrades will greatly enhance the 150th Fighter Wing's ability to
    robustly support in-theater and homeland defense operations.
                              new mexico ang f-35s
        Question. Earlier this year the Air Force Chief of Staff released
    his ``roadmap for the future''. This roadmap names Kirtland AFB as a
    potential bed-down location for the F-35 and the Combat Search and
    Rescue Aircraft (CSAR-X). We are excited that Kirtland AFB and the
    150th Fighter Wing (FW) are included in the roadmap, but there are some
    additional points about Kirtland and the 150 FW that I would like to
    bring to your attention.
      --Kirtland AFB scored the highest of 33 locations on the BRAC 2005
            score sheet for Air National Guard Fighter sites.
      --Kirtland is the sixth largest Air Force Base in the country with
            the best airspace, ranges and weather in the country.
      --Multi-role fighter aircraft from Kirtland AFB can provide adversary
            fighter training for the F-22s at Holloman AFB.
      --These same F-35 aircraft can provide needed air-to-ground fighters
            for close air support training at Cannon AFB, White Sands
            Missile Range, and Fort Bliss, Texas
        Kirtland AFB and the 150th Fighter Wing seem to be a natural fit
    for the F-35. What are you doing to develop the F-35 fighter mission
    for the Air National Guard at Kirtland Air Force Base?
        Answer. On January 16, 2008, General Moseley, the Chief of Staff of
    the Air Force, released his strategic roadmap, his long-term plan for
    basing of the next-generation weapon systems. Kirtland Air Force Base,
    New Mexico was listed as a potential bed-down location.
        We assure you Kirtland AFB will receive full consideration and will
    be evaluated to support a potential F-35 mission. Each potential
    location that meets the preliminary requirements is subject to further
    analysis, to include an environmental impact study which is mandated by
    the National Environmental Protection Act. These studies take time and
    will be conducted over the next several years. Kirtland AFB has many
    great qualities which provide for superb flying operations and these
    factors will be considered when the final F-35 basing decisions are
    made.
        The National Guard Bureau continues to advocate for parallel and
    proportional recapitalization of the Air National Guard throughout the
    Air Force's Planning, Programming and Budgeting process. As an
    operational and strategic reserve force, we must continue to meet the
    demands of our mission today while preparing for the challenges of
    tomorrow. Total Recapitalization of our Total Force is vital to our
    Nation's security and we look forward to your support of our efforts.

                              SUBCOMMITTEE RECESS

        Senator Stevens. This subcommittee will next meet on
    Tuesday, May 20, at 11 a.m., at which time we will receive
    testimony from the Secretary of Defense, Robert Gates, on the
    Defense Department's fiscal year 2009 budget request.
        Thank you all very much.
        [Whereupon, at 12:10 p.m., Wednesday, May 14, the
    subcommittee was recessed, to reconvene at 11 a.m., Tuesday,
    May 20.]