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 <subject>Defense budgets</subject>
 <subject>Future budget projections</subject>
 <subject>Military personnel</subject>
 <subject>Civilian employees</subject>
 <subject>Budget cuts</subject>
 <subject>Military downsizing</subject>
 <subject>Health care costs</subject>
 <subject>Defense cost control</subject>
 <subject>Budget outlays</subject>
 <subject>Appropriation accounts</subject>
 <identifier>DOD Future Years Defense Program</identifier>
 <identifier>DOD Cooperative Threat Reduction Program</identifier>
 <identifier>Defense Business Operations Fund</identifier>
 <identifier>Defense Health Program</identifier>
 <identifier>DOD Composite Health Care System</identifier>
 <identifier>DOD Environmental Restoration Program</identifier>
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<titleInfo>
 <title>Defense Budget: Analysis of Operation and Maintenance Accounts for 1985-2001</title>
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<abstract>GAO reviewed the Department of Defense&apos;s (DOD) budget request for fiscal
year (FY) 1997 for its operation and maintenance (O&amp;M) accounts,
focusing on: (1) how annual funding relates to military and civilian
personnel levels through 2001; (2) overall trends from fiscal years 1985
though 2001; and (3) key areas in which most money has been budgeted
through 2001.&lt;p/&gt;GAO found that: (1) total DOD O&amp;M funds, in constant FY 1997 dollars,
are projected to decline at a slower rate than either civilian or
military personnel levels between fiscal years 1985 and 2001; (2)
however, beginning in FY 2000, projections show that O&amp;M funds begin to
rise at the same time civilian personnel decline and military personnel
remain relative stable; (3) increases in other O&amp;M-funded programs will
more than offset the decline in O&amp;M-funded civilian salaries; (4) since
1993, approximately 85 percent of the funds are concentrated in five
budget accounts; (5) another data view shows that three major defense
programs receive the majority of annual O&amp;M funds; (6) between fiscal
years 1993 and 2001, about 50 percent of annual O&amp;M funds are found in
five of DOD&apos;s mission categories; (7) in total, there are about 30
mission categories during the FY 1993-2001 time period; (8) from an
organizational perspective, the military services&apos; portion of total
annual O&amp;M funds declines; (9) beginning in FY 1998, the Army is
projected to receive a smaller proportion of annual O&amp;M funds than
either of the other two services or the combined DOD agencies; (10) even
though the Army will receive the smallest portion of annual O&amp;M funds,
this service will have the second largest active military force and the
largest civilian workforce; (11) the Navy-Marine Corps&apos; share of annual
O&amp;M funds declined by almost 10 percent prior to FY 1996; (12) in
contrast, the Air Force&apos;s proportion of annual O&amp;M funds changes the
least of the three services, while Air Force military and civilian
personnel levels fall significantly over the FY 1985-2001 time period;
(13) only the combined DOD agencies&apos; share of annual O&amp;M funds increases
between fiscal years 1985 and 2001 because of the health program funding
consolidation into a Defensewide account; (14) regardless of how the O&amp;M
budget is analyzed, medical is the only area where consistent growth
occurred; (15) O&amp;M funds for medical activities increase by 72.8 percent
from fiscal years 1985 through 2001; (16) the majority of these costs
are for the health care needs of DOD&apos;s 8.3 million eligible
beneficiaries; (17) during fiscal years 1985 through 2001, O&amp;M
infrastructure funds that can be clearly identified in the Future Years
Defense Program decline by 22.6 percent and thus mirror total O&amp;M
trends; (18) despite increases, O&amp;M continues to fund about half of DOD*</abstract>
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<identifier type="preferred citation">GAO/NSIAD-97-73</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/NSIAD-97-73; Defense Budget: Analysis of Operation and Maintenance Accounts for 1985-2001;
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<subject>
 <topic>Defense budgets</topic>
 <topic>Future budget projections</topic>
 <topic>Military personnel</topic>
 <topic>Civilian employees</topic>
 <topic>Budget cuts</topic>
 <topic>Military downsizing</topic>
 <topic>Health care costs</topic>
 <topic>Defense cost control</topic>
 <topic>Budget outlays</topic>
 <topic>Appropriation accounts</topic>
 <topic>DOD Future Years Defense Program</topic>
 <topic>DOD Cooperative Threat Reduction Program</topic>
 <topic>Defense Business Operations Fund</topic>
 <topic>Defense Health Program</topic>
 <topic>DOD Composite Health Care System</topic>
 <topic>DOD Environmental Restoration Program</topic>
 <topic>DOD Environmental Compliance Program</topic>
 <topic>DOD Environmental Conservation Program</topic>
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