tv Army 2020 Budget Request Briefing CSPAN March 18, 2019 5:16pm-5:58pm EDT
partners out there. i think when you look at the edi in general it has five lines of effort and only one of those effort is really decreasing in the fy '20 budget and that's the infrastructure because we've really done a lot of that work to this point. >> that's the military construction side of it that ms. mccuss kerr is referring to. >> and the prepositioning i mentioned earlier. >> thank you very much. that concludes our time tonight. ladies and gentlemen, the big clock in the back says it's 12:50 so i don't want to lose
any valuable army time here. so good afternoon, ladies and gentlemen. i'm colonel kathy turner, the army major relations chief. i'll be moderating today's session. ryan mccarthy is providing opening comments. the military deputy to the assistant secretary for financial management and comptroller. he'll provide an overview of the army's portion of the president's fiscal year 2020 budget request. following their remarks, we should have about 15 minutes for questions. i'll call on you and i would like to keep it to one question just because i want as many questions as possible. with that, under secretary? >> thank you. i'll talk a little bit about the key shifts under taken in this fiscal year '20 effort. we ask you to look at it in the context of what we've done in '18 and '19 and how it fits together as we march across the fit-up from the choices that were made in fiscal year '18 and '19. as we published the national
defense strategy in january of 2018, there were four key pillars associated with the nds, nuclear posture, great power competition, irregular warfare and partnership capacity. now, the great power competition is a central challenge associated with this nds and something where the army in particular had to make some pretty significant steps as we try to modernize our force but maintain a readiness posture that we're quite frankly we fill over 20% of requirements. in this budget you'll see that readiness is our number one priority and will remain that way until at least fiscal year '22 when we can get all of our brigade combat teams to the highest level of readiness. we're maxing our ctc rotations, and trying to fill brigade combat teams with 105% manning. so readiness is -- will continue to be the number one priority
for the army. the choices in this budget for modernization that we're truly difficult but challenging, but ones the entire army leadership stood shoulder to shoulder on and owned. the choices that were initially made in fiscal year 2018 and 2019 is where we structured the s & t budgets. long range precision fires, future vertical lift, network, integrated air missile defense and we have two complementary efforts and position navigating and timing. within those six plus two priorities, there are 37 signature systems that were required. substantial funding in the out years so we can pull them through that weapons modernization knot hole. these decisions that were made were essentially priming the pump in '18 and '19 so that budget deal in '18 and '19 not
only help us restore our readiness posture but really to prime the pump for our modernization efforts across the future. in fiscal year '20, this is where we make this almost symbolic or signature step to depart from legacy systems of our big weapon systems standing in our formations today. this will take time. spanning across the fit-up and even longer to bring these new systems online and field them into our formations. so last spring and summer, the army leadership conducted what you've all heard of as night court. the army staff as a sense of humor. we spent the spring and summer together spanning north of 70 hours, principals only. everyone had to do their homework and delaying these hard choices against our priorities. in the process, we've truncated the buys over 93 system and terminated 93 others. found north of $30 billion
across the entire budget of the fiscal -- five year defense plan and laying in those cuts over time to finance our ambition. in '18 and '19 when we started this process, we were about 80% legacy investments to 20 modernization. with the shift of that s & t budget we went to about 70/30. the choice between 20 to 24 we'll get to 50/50 investments against developmental systems and legacy by the end of this fit-up. these choices were complex and they were difficult and at times people will focus in on the folks that had, you know, winners and losers if you will but what we look at is the choices we had to make from modernization standpoint to be the army we need by 202018. this presents enormous opportunity in business for the commercial entities that do business with us. north of $57 billion in the out years. so if we're looking for companies around the country
that will work with them, we also want them to invest and come along with us. because we have to make these choices for the future. we'll try to limit my time so we can get general horlander to walk you through charts and take questions. >> thank you, mr. secretary. good afternoon, everybody. great to see everyone. so i will probably spend just a little bit of time on the first couple of charts. i think they've been covered by the second and previously by dod, but you can see the real point i'd like to make on this first chart is, of a million man army at any given day we have 180,000 soldiers still across 140 countries, okay? that's a sizeable footprint. there's a lot of activity and i will tell you the activity is only increasing as time goes on. you're familiar with the strategic environment. you're familiar with the nds, the threats that are out there. i don't need to cover that in any great detail and i will tell
you so that the strategic approach that the secretary already covered pretty much speaks for itself. you guys know the army budget is really broken up into three components. we're on a trajectory to have modest growth in our end strength. we're on a trajectory as you heard the secretary say to build readiness to two-thirds of our bct by 2022 and we have a modernization strategy that fully -- that supports the nds to get us at an end state of 2028. in addition to that, there are a lot of efforts to strengthen the partnerships with our allies and also there has been a lot of effort put into the business reforms across the department of the army. so i took some time and i won't go in detail on this but if you look at this chart, this is really a simple way to look at what we've done over time in terms of inways and means
framework. i would just pick up with -- you're already familiar with the ends provided to us by the osd and army senior leaders, and that pretty much covers what is there in the ways. the means, the goodness here is as you can see, we have enjoyed an increase in the defense top line here for the united states army and of course the entire department for the last couple of years. and because -- because of that, we've been able to have a more balanced program, okay, and so the point to really be made here, we're not -- when we -- when we develop this budget, when we sat there and did night courts and all of this, going -- all of the army wants to do is not go back to the department, not go back to congress and ask for more money to modernize to get us to the 2028 modernization strategy. so, as you look at the numbers there, you can see we're asking for -- from this current year fy
'19 to 2020 it's only about 2.5 increase to our budget. the total request totals $182.3 billion. i know there's been a discussion about the 9.2, 182.3 represents the army's requirements and 2020 budget request. you can see how that breaks out between base and oko. when i talk to you, i talk apples to apples. what are my base requirements, $150.7 billion. what are my oko for oko requirements? 25.8 and i think most of you are familiar with we have a couple of passthrough accounts for the army security force fund and the counterterrorism equipment fund. but that represents the totality of $182.3 billion. in building this budget, we employed several themes, familiar with some of those. the other things i'd like to cover on the slide for you really quick are -- while we are going to increase capacity, bud
readiness and pursue a pretty aggressive modernization program, we also -- we also are investing in our critical infrastructure. that's both army, family housing and just buildings across -- across the footprint there. clearly we took a lot of time and dedicated some resources to supporting the army's families and our civilians and then, of course, i can talk to you more about the streamlining and the reforms that we implemented here that enable us really to optimize the purchasing power of the budget that we are requesting. here is -- here it is broken up by oko and base. you can see very clearly that in my base request or in the army's base request, sorry, of 150.7, there is a portion of that that is oko for base but the totality of the base requests for us is 150.7. most of those show an increase from what we got enacted in fy
'19 and with as is consistent across the entire department a pretty sizeable increase and we can talk more about that here as we go. in oko, we're funding pretty much the same operation that's we funded here in fy '19 with iraq, afghanistan, the ones that you're very familiar with to include the funding for edi over there in europe. so in our personnel accounts, obviously this is the biggest slice of our budget. we are requesting over $60 billion, not inconsistent with what we've asked for in year's past. this is to -- this is to continue on a trajectory of growth. however, a more modest trajectory than what you were familiar with in the past. that's across all three compost. this includes an increase in our soldier's pay and the housing
allowance and assistance housing and this will allow us to recruit and retain. that desired end state here in the active component is 480,000 soldiers here in fy '20. you can see up there on the slide, same for the guard and the reserve, the trajectory for the guards, an additional 500 soldiers for the army serves, 250. i take you to our operations and maintenance account. total requests is 52.6. that is for all three components of the united states army and this will allow us to stay on our trajectory to attain or to achieve our readiness goals by 2022. i would mention because of the consistent funding that we've gotten at a higher level here over the last couple of years has really allowed us to make some great readiness gains, greater than 55% of our bcts right now are at a higher level of readiness than what they were
in previous years. there's good news there, and we will need to continue this level of funding to achieve those readiness goals that we've set for ourselves by 2022. we've also -- we've also funded 32 ctc reitation, 25 of those are decisive action rotation. four of those are for the army national guard. you might remember several years ago, the army national guard did not have ctc rotation. we feel really good about doing that. we're also building readiness in our combat aviation brigades as you can see on the slide there. there's an increase in the amount of money we are spending for hours per flight crew per month. both in the active component and in the national guard, we've extended our one station unit
training for those initial entry soldiers for 22 weeks for the infantry. we'll do the same for some of our combat branches. this budget gets after that as well. so funding for some of our multi-lateral exercises both in the pacific and in europe that will help us to build those critical partnerships that we need with our allies. we are right now funding our installation services, base operate support at 85% of the requirement. that's an increase. that's a good news story. to maintain our facilities, let me correct myself. for installation services is 94%. i misspoke. for our facilities and when i talk about maintaining facilities in the omm account, i'm talking about soldiers' barracks and all of the existing facilities that we have out there on the army installations. right now we're funding our sustainment at 85% of the requirement and in this budget
we're asking for an additional $600 million for the restoration and modernization of many of those facilities. so that is -- that is pretty much what we're asking for here in the omn budget. let me transition very quickly to the third big slice, if you will of the army's budget and that's our research and development acquisition, i.e modernization. this entire modernization effort totals $34 billion in this request. it's a bold shift as you heard the secretary describe that over time. it isn't all going to happen in fy '20. it's incremental done over the next five years and beyond that as well, but right now we're looking at quite an uptick in rdt & e. there's about a $1.1 billion increase in our rdt & e efforts and just a small -- a small decrease in the procurement.
we can talk more about that here in just a minute. this allows us to stay on that end state to modernize in 2028 in accordance with the army strategy and the army senior leaders architected a plan to do this through the processes of night court or what have you. and so when i talk to you about reforms, though, part of the biggest reforms we had was establishment of the army futures command, the establishment of the a cross functional teams that many of you are familiar with and of course, how we align those 30 modernization signature system underneath those -- that is a huge reform. we see that as tantamount to being able to modernize by 2028. there are a number of other things that are components of this modernization strategy that played out as we built this budget, so clearly a divestiture of some of our legacy systems over time. that doesn't mean we're just totally divorcing ourselves from
our legacy systems. we'll still need those especially as we transition to the next generation of capabilities that we endeavor to build. and then -- and then as you can see, over time, as a secretary described it, we'll be eliminating or reducing or delaying some of the systems. but that is really the crux of our ada account -- rda account. i already covered the increase there. that's very consistent with the modernization plan and what we're trying to do there and you can see, when you get into the details of the rdt & e budget, you can see in s & t, 80% is aligned against our modernization project. 60% of that is aligned to that. so the second half of that is
procurement and in the procurement accounts there's about $21.8 billion request there. you can see how that plays out. we've enjoyed some -- the army has seen some increases in procurement over the last couple of years that very much informed where we were going to request money here in '20 and so as we're transitioning, i would tell you this really represents a balance more so than what we've been able to do in the past, not only a balance that allows us to pursue the modernization strategy but really a balance that allows us to have a greater balance between end strength and modernization and current readiness. so we can get into the details of some of the systems that we're looking at here. so here in fy '20 there are increased funding levels for the blackhawks. we pretty much maxed production on many of our missiles,
munitions, are all seeing a max production rate in this request. we are continuing on the same glide path for abrams upgrade, still doing the same amount of apache remans as we did in fy '19. the secretary mentioned there's a couple of systems here that are going to start to see a decline in the funding levels, the bradley, and -- and other than that, i would tell you this is probably a really good balanced procurement program based upon everything we're trying to do over time as you look at this and you look at this across the continuum of the fight. couple other accounts, we're asking for 300 million more dollars in millcon. you can see that totals about 35 different projects and then in our army family housing, army family housing is both
construction and the operations of army family housing. i am specifically talking about what the united states army is responsible for managing, what we own. and so there's about $500 million request here, some of that is to construct three new housing projects and some of that, of course, is to operate and maintain the housing that we do have. we were also able this year to divest ourselves of some pricey leases overseas, so that helped to save some money in that account as well. there's a couple of other basic accounts in there. i don't need to cover those in great detail. arlington national cemetery, the accounts that we have at pueblo. i just got a small little picture there on the oko request and so you can see there, it's 31.6. funding those same operations as we've done in the past and a
little over 5 billion of that are passthrough accounts. just to kinds of wrap up here, $182.3 billion is the army's budget request, allows us to stay on the trajectory to achieve our readiness goals. it absolutely focused on the nds, modest end strength growth and in terms of readiness, of course, you know, you heard about the one station unit training we're able to invest in home station unit training that makes the cte so much more valuable and got a very healthy reform agenda going on here as well and strengthening the partnerships. i wanted to cover that and do that kind of quickly so that we could afford you as much time as possible to ask questions. >> lita? >> i'm still a little bit confused on the millcon issues. i'm wondering if you can help explain, in the dod budget they
talk about 3.62 billion for new border wall funding and $3.6 billion to repay what will be spent in year if the emergency funding is used out of millcon. i'm wondering, is this in the army budget, where is it in the army budget and is the 3.6 billion in its own separate fund for the border or is it in projects that you think you might have to take away from because of the emergency? i'm just confused how that's going to work. >> so, it is 3.6 and 3.6 and 2 billion, right, that adds up to 9.2. it's all in the military construction army oko account and while the department has asked us to leave the answers to these questions to them, i can just sketch it out for you really quick.
3.6 could be for new construction for emergency purposes. 3 . -- >> new construction barrier or new construction -- >> just emergency construction is how we call that. >> okay. >> another 3.6 would be in the event that we would need to restore some funding in some of the millcon projects that funding was otherwise redirected to a different purpose and then $2 billion would be for hazard -- hurricane remediation. >> 3.6 building for new construction, is it new construction for the border or is it just one big pot of 3.6 billion that can be used for any emergency the army deems appropriate? >> so we call this emergency, for emergency purposes, so any details, ma'am, i'm sorry i'd have you to talk with --
>> we'll get more questions to the questions. >> i'm not asking you to recite all 30 programs or all 93 cut programs in rhyming complex, can you give us some prominent examples -- i see a small decrease in some of the afe construction, no -- i'm not seeing any big heads on the wall or any small things emerging that were negligible suddenly getting big, of all the three things that go up, the 186 things that go down, what are some examples that you're particularly proud of or painful to achieve but still necessary? give us highlights from that, sir. >> sidney, the choices of how these programs will be divested happen across the fit-up towards the end of the fit-up and you're synchronizing them with the
advancement portfolios so when you've gotten through the prototyping experimentation phase and then you're getting into a low rate initial production traunches of capability and then that -- looking like the sand chart, you'll see them divest the assets and bring the new ones on. it's starting to signal as the funding lays in over time and you get through the modernization process, ultimately they synchronize toward the bank end of this fit-up. >> that 30 odd billion that's moving, we're not going to see very much of it this year, most of it's backloaded which we don't have. >> it's another step -- you look the pipes start to open, the funding increases year over year as the maturity of systems come online. >> let's go to ryan. >> ryan brown, cnn. i just wanted to ask a little bit about some of the money that was used operations for the southwest border mission.
obviously that was an emerging requirement, but is there any money that's to replenish some of those o & m funds that were used to pay for that this year or is there any projection that operation will continue and how much money is allocated to that operation? >> so in the fy '20 budget we are not requesting funds to conduct missions on the southwest border. as you're well aware, we have some soldiers right now providing missions in support of homeland security. in the '20 budget, no, we don't -- we're not requesting funds for that purpose. >> can you say what fund is being used to support that current operation or -- >> right now the army's using some of its own to fund that. it's not staggering to the point where it's hurting our readiness but it could. >> thank you. >> marcus west. yesterday the pentagon said it was beginning fabrication
activities on non-inf compliant cruise missile systems. is any of that in the army budget? is that the attackums that under there? >> we're in the process of developing the precision strike missile which is a replacement program. it's a greater lethality, two in the tube. same platform essentially. the industry has indicated to us that if indeed the united states were to depart from the inf treaty, it's a software update and you could extend the range beyond the inf limitations. to the extent you would go north of that number but we'd have to spiral in capability to get even greater ranges. the capability exists today. >> is there any changes to the program of record there or what's to account for the decline? >> looking hard at the requirements associated with
just how many jltvs that we need in the program, our vehicle fleet today has, i think, i'd have to be correct, but humvee, we have well north of 100,000 vehicles in our vehicle fleet and so we're trying to hone in on the exact number of requirements of vehicles and that's why the buy will be truncated over time. >> hi. if you compare the administration's fy '19 request to the fy '20 request for army and strength total reserve and active, it looks like the growth is actually slowing. we're projected to be about 25,000 more than you will be in 2023, i'm wondering, is that just a reflection of maybe either recruiting challenges or just this right sizing for the previous person said was, you know, --
>> we do need to grow, we need the growth, the issue there is, it's two variables associated with the decision. one is financially, obviously, and the second from a standpoint if we want to make sure we could have modest steady growth, maintain quality standards and there are difficult challenges that are presented, a 3.9% unemployment. we changed our strategy in the department of the army, focused on 22 key cities in the united states, looking at the changes within our army marketing organization, how we message to the country, so we thought that a slower more modest growth was effective but we will still be on track to pursue about a 488,000 end strength by the ends of this fit-up. >> hi. i wanted to ask about some of the missile increases that we're seeing in the budget. it looks like hell fire you're planning to buy 5,112, ghimlers
also have an increase. was that planned? was the sudden increase especially when you cleared hell fires replacement for production? >> a lot of this was the replenishment of existing stocks and get to that tamer which is the worldwide requirement for munitions, so -- and we had -- we had the opportunity with the '1819 budget deal to really get back to that and i think we'll be restored by '21/'22. >> we're at max capacity right now. >> we'll hit the total requirements, so we're very blessed with the '18, '19 deal and it got back to restore the health of that stocks.
>> was that -- that hell fire increase, was that planned last year or is this a new decision that was made because you just still haven't met what you need to? >> much of it was also -- we had an extensive utilization in the middle east and the burn rates were pretty high, so we had to make an adjustment to restore those stocks. >> thank you. >> it came up in the last briefing that dod might make the fit-up confidential or not show the fit-up numbers. does the army plan to release its fit-up in full? >> we use that -- we usually call it official use. we keep it sensitive. the numbers change a lot, so as you make adjustments that's usually why we don't publish them because we want to be consistent in how we communicate externally. >> since that was a short one, there was a major increase in rdt & e for ba 4 under that line, also called advanced component development and
prototypes, what was the discussion or rational behind that decision and then what risk are you taking by cutting the basic research s & t? >> it's very simple. we want to fly it before we buy it. we have to see to learn from these experiments so that we can get the best solutions possible and if we're going to fail, we want to do it early and cheap. a much more of an aggressive posture with prototyping these capabilities. >> just looking now at the rdt & e chart, i was just wondering the ranking out of the modernization priorities, long range fires is on top. next gen combat building has 500,000 more so i was just wondering, i was just wondering how that baird out? >> just on sheer volume you're correct. you have to also take into
account the hardware cost associated with those priorities. we fill them in order, so if the requirement is x, you're going to get the money first. with respect to like combat vehicle and helicopters, the hardware and the software's just very expensive on those assets. >> two questions first on the southwest border. the 3.6 and the 3.6, is that going through what you call the passthrough accounts in your oko or is that a different thing? >> so that is just -- right now placed in the army's oko millcon account and so i would ask you, sir, again, let's defer these questions to osd who can provide you with a great level of detail. >> also on the oko, earlier we were told that the amount of money that had been shifted into oko this year for base purposes has been done in the past.
is that your recollection as well for both of you that the amounts of money that are being shifted in there -- what are some of the things that have been shifted into your army oko that seem to be new? >> so there has been over i'd say the last fivefive to six ye there have been wedges for base purposes, as i like to call it. not to the size that you see here but that really just depended upon how much space we had in the base top line and what the base requirements were so there was a delta there. and that was agreed upon and ordered by congress for the most part when we submitted the budget. >> do you anticipate congressional issues with a much larger account this time around? >> i think we will have substantial discussion when we
testify. >> i was curious about the iron dome purchase. i did not see anything about it in the budget documents that you released today. are you still on track for september 2020 with that requirement and what will the cost look like and since that is designed for rockets and artillery how will that work for cruise missiles? >> we are on track for procurement and i will get the experts to talk you through the mechanics of that. >> i notice here that it does not include the 9.2 billion emergency funding so can you clarify, does all of that 9.2 billion is is that all coming out of the army budget and where exactly? >> just to clarify the army
budget is 182.3 and there is a 9.2 billion wedge placed in there for emergency purposes and when we talk, when we lay the budget out and talk to everybody about this to insure consistency from year to year, we articulate it that way so right now our request not including the $9 billion is 31.6. okay? so i would tell you that 9.2 needs to be discussed independent right now it is just incorporated into the army's budget so osb can carry forward to congress as part of the defense request. >> is it actually coming from the army budget? >> it is right now placed for defense emergency purposes in the army's budget but it's the
department of defense that needs to represent everybody. >> also just a follow up to the class five question, i don't believe it is official -- it is official use. it's sensitive but not classified. >> on the website for public release. >> one more question to wrap it up. >> i understand you are reinvesting but i am wondering are you expecting industries to articulate concerns as you move away from some of the platforms? >> so we have tried to do everything eimaginable to signal our intent and where we
are going but the fy '18, apr we moved 994 against the six signature priorities, the 30 weapons, and six priorities and we published a modernization strategy that we gave to congress and the industry. every monday night we have a ceo dinner and we consistently telegraph to commercial industry where we are going. that is not to say there will not be challenges associated with this. there will be somewhere we depart from legacy systems and there will be others on the front end that may be effected. we are working with them and trying to communicate as transparent as possible but we will do much to finance the ambition. >> we need to wrap it up with closing remarks. >> just thank everybody.
i appreciate that. we will follow up with questions and do our best to answer your questions in a timely manner. >> we will make ourselves available to see as much of you and as many of you as possible who is interested. we are making deition is to finance decisions. we recognize the fiscal climate. we can face flat or declining budgets and we are trying to make decisions to make the transformation of the army. thank you for the time and i'm sure we will see you soon. thank you. >> thank you everybody for coming. i know we have follow ups and wrote down notes. we want a transition time between the next service. >> thank you, everybody.
coming up here, more on the pentagon's 2020 budget request with a briefing of what is in the navy's budget plan. that's followed by presentations by officials with the air force and military defense agency. while congress is on break we are showing american history tv programs normally only seen on the weekends. tonight is the civil war and presentations from historians co hosted by the american civil war museum and the university of virginia central war history. you will hear about the causes of the war and how african americans dealt with the war. we begin tonight with paul
macham on cspan3. president trump is supposed to increase ship building. the secretary for the navy briefed us on the president's plan. this is 40 minutes. good afternoon. in a few moments we will have the deputy assistant secretary of the navy for budget presenting the position. following the presentation we will take some of your questions. hi every one. thank you for joining me today as i provide an overview of