Presentation for Business Managers Conference

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Presentation for Business Managers Conference

• Dave Atherton
• Chief, Communications and Support Division
• Army Budget Office

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Department of Defense Spending over
Time(Constant 2006 Dollars)
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(No Transcript)
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The Budget Process
Programming and Internal Budget Process Sets the
Stage for Hill Success Congress Affects the
Margins BUT for Most Programs, the Margins Are
Important
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2008 Federal Budget Debate

• GWOT
• Concern over large federal budget deficit
• Interest in extending or ending tax cuts
• Administration and Congressional interest in
  restraining spending and earmarks

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Secretary Gates on the PresidentsDefense Budget
Requests
The truth is they represent a staggering amount
of money. Secretary of Defense Robert
Gates Testimony before the House Armed Services
Committee February 7, 2007
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Legislative Battle Space
White House
Polls
OMB
Congress
Pentagon
Media
OSD
Army
Members
Navy
Professional Staff
Marines
Personal Staff
Industry
Think Tanks
Air Force
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Budget Debate Timeline

• Presidents Budget Released early February
• FY07 Supplemental
• FY08 Supplemental
• FY08 Base Budget
• Congress now holding hearings on Presidents
  budget requests
• DASC Parades FY08 Base
• Staffer Hearings FY07 Supplemental and FY08
  Base
• House and Senate will develop their own budget
  blueprint called a budget resolution
• This will set targets for overall discretionary
  funding and cuts in entitlements
• April FY08 Budget Resolution completed and FY07
  Supplemental Appropriated
• May-July FY08 Base Reconciliation bill to
  achieve cuts required in budget resolution
• Spring/Summer/Fall FY08 Appropriations process

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The Federal Budget Calendar October
Figure 30

• October 1 New federal fiscal year begins
• If appropriations laws are not enacted by October
  1, Congress typically enacts temporary band-aid
  measures (called Continuing Resolutions) to keep
  programs operating until the laws are enacted.

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110th Congress, 1st Session House Appropriations
Committee Subcommittee on Defense
Ranking Member C.W. Bill Young R-FL-10
Chairman John P. Murtha D-PA-12
Majority Staff Director David Morrison
Minority Staff Director John Shank
Jack Kingston R-GA-1
Norman Dicks D-WA-6
Robert Bud Cramer D-AL-5
David Hobson R-OH-7
Peter Visclosky D-IN-1
Allen BoydD-FL-2
Rodney FrelinghuysenR-NJ-11
Ranking Order
Ranking Order
Ranking Order
James MoranD-VA-8
Steven Rothman D-NJ-9
Todd TiahrtR-KS-4
Roger WickerR-MS-1
Marcy KapturD-OH-9
Sanford BishopD-GA-2
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110th Congress, 1st Session Senate Appropriations
Committee Subcommittee on Defense
Ranking Member Ted Stevens R-AK
Chairman Daniel Inouye D-HI
Staff Director Charlie Houy
Minority Staff Director Sid Ashworth
Robert Byrd D-WV
Dianne Feinstein D-CA
Thad Cochran R- MS
Mitch McConnell R-KY
Patrick Leahy D-VT
Arlen Specter R-PA
Richard Shelby R-AL
Barbara Mikulski D-MD
Ranking Order
Ranking Order
Tom Harkin D-IA
Ranking Order
Peter Domenici R-NM
Judd Gregg R-NH
Herb Kohl D-WI
Byron Dorgan D-ND
Kay Bailey Hutchison R-TX
Patty Murray D-WA
Christopher Bond R-MO
Richard Durbin D-IL
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(No Transcript)
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110th Congress Senate Committee on Armed Services
Republicans
Democrats
Chairman
Ranking
John Warner (VA)
John McCain (AZ)
Jack Reed (RI)
Joe Lieberman (CT)
Ted Kennedy (MA)
Robert Byrd (WV)
Carl Levin (MI)
James Inhofe (OK)
Susan Collins (ME)
Jeff Sessions (AL)
Evan Bayh (IN)
Daniel Akaka (HI)
Hillary Clinton (NY)
Ben Nelson (NE)
Bill Nelson (FL)
Lindsey Graham (SC)
John Ensign (NV)
Elizabeth Dole (NC)
John Cornyn (TX)
Saxby Chambliss (GA)
13 Democrats12 Republicans
Mark Pryor (AR)
John Thune (SD)
Mel Martinez (FL)
Jim Webb (VA)
Claire McCaskill (MO)
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Tenor of the Hill - House

• REP PELOSI We want an accounting, a
  justification for the 87B you are asking for now
  and we want an accounting for this failed
  policy. --- 16 Oct 06
• REP OBEY To treat funding for the Iraq war as
  an unexpected emergency is a perversion of the
  term. By the way of comparison, the Vietnam War
  required only a single supplemental, after which
  it was financed through the regular budget
  process. --- HR 109-504 FY07 Defense
  Appropriations Bill
• While not an emergency, this funding is provided
  as such because it is politically expedient. It
  allows the Administration and the Congress to
  avoid the budgetary tradeoffs and to hide the
  full cost of the war. --- HR 109-504 FY07
  Defense Appropriations Bill
• REP SKELTON The time to treat it as a
  emergency is well past it hides the true costs
  of the conflict Congress and the American
  people must be able to see the full costs of the
  war, and it must be done through the regular
  budget process and not through supplementals.
  Armed Forces Journal, Apr 06
• REP SPRATT We need a better system for
  tracking these costs as they are incurred we
  need to have the information so that we can keep
  tabs on some of the contingencies that are going
  to have to be paid down the road. --- 25 May 05

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Tenor of the Hill - Senate

• SEN REID Its been more than three years since
  this war began, and President Bush has made it
  clear that he intends to continue it for some
  time.  This isnt a temporary or unexpected
  emergency.  Its an ongoing cost.  And it ought
  to be in the budget. --- 14 Jun 06
• SEN BYRD No, this White House wants to simply
  dictate the decisions and have the Congressional
  ATM machine spit out the money.
• This is not an acceptable way to pay for our
  overseas missions.  This is a blatant attempt to
  mislead the American people about Administration
  policies that are leading to fiscal disaster. 
  That is why I offer an amendment that states the
  sense of the Senate that the President should
  include in the budgets that he submits to
  Congress a specific request for funds to pay for
  our incremental costs in Iraq and Afghanistan. 
  --- 17 Jul 03
• SEN LEVIN Responsible budgeting means making
  choices and setting priorities it understates
  the true cost of our defense programs because it
  does not fully recognize or pay for the cost of
  ongoing operations in Iraq and Afghanistan in
  2007. --- 8 Feb 06
• SEN CONRAD I believe these war costs should
  have been budgeted for and paid for. Instead, we
  just keep putting it on the charge card. --- 27
  Apr 06

Conclusion There is no finish line Always
another opportunity
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How it Works Follow the Money
Organization Representation in Budget
Process

• Congress
• Department of Defense
• Army
• PEO
• PM

• Represented by HAC/SAC staff
• Represented by OSD Comptroller Staff
• Army Budget Office
• PEO RM Staff
• PM RM Staff

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How it Works Follow the Money Part 2
Representative Interest/ Handling

• Overall Strategy and member concerns - 100B
• Balance Between Services - 50B
• Army balance between programs- 2B
• Managing PMs 250M
• PM managing program - 50M

• HAC/SAC staff
• OSD Staff
• Army Budget Office
• PEO RM Staff
• PM Staff

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Conflicting Goals

• Congressional Staff strategy and member
  concerns changes OSD budget
• OSD balance between services could adjust Army
  budget
• HQDA adjustments to balance between programs
  could change PEO and PM budget
• PEO adjustments could change PM budgets.

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Potential for Miscommunication

• Lack of context organizations not familiar with
  each others needs and goals
• Unfamiliarity individuals not aware of
  service/program complexity, high level budget
  strategy
• Inability to accept change organization
  unwilling to accept reductions, even if for good
  reason.