RELEASE EMBARGOED UNTIL No. 97-08 6 A.M. STANDARD TIME FEB. 6 Feb. 5, 1997 THE ARMY BUDGET FISCAL YEAR 1998 The Army announced today details of its budget for Fiscal Year 1998. The Army is requesting $60.4 billion in Total Obligation Authority for Fiscal Year 1998. This level of funding ensures operating accounts are adequate to protect near term readiness. The Army continues the initiative begun in last year's budget of seeking better business practices and technological improvements to reduce the cost of doing business. Approximately $1 billion in savings are reflected in the Fiscal Year 1998 budget as a result of this initiative. The Army remains the nation's full-spectrum force of the 21st century, placing soldiers on the ground around the globe and at home, balancing dominant maneuver with precision engagement. The Fiscal Year 1998 budget provides an Army capable of responding to the near-term challenge of regional instability and the long-term challenge posed by military-technological change. A trained and ready, capabilities-based force is necessary to successfully accomplish the missions assigned to the Army. To achieve this capability, the Army must have quality people, quality training and quality equipment. This budget enables the Army to recruit and retain quality people, the Army's most important resource, and provides essential quality of life programs for soldiers and their families. It provides for operational training superior to that of any nation in the world. It adequately funds support of fielded equipment and logistic items that are critical to near-term readiness. The Army has had to accept some risk, however, in the modernization accounts because of the high cost of acquiring top quality equipment. At the same time, critical modernization programs, such as Comanche, Crusader, Longbow, Apache, Abrams Tank Upgrade, and the Family of Medium Tactical Vehicles, continue to move forward. I. READINESS The Army's readiness objectives are to win the Nation's wars, support Operations Other Than War and to support the Nation. The Fiscal Year 1998 budget request supports the Army's readiness objectives by providing adequate funding of ground Operating Tempo and flying hour program requirements. These programs fund tough, realistic training at home stations, combat training centers, and joint and combined exercises. Fiscal Year 1998 represents the first year of the Army's long range plan to leverage training device and simulation technology that reduce training costs while maintaining combat readiness. The budget request also includes up-front investments in Distance Learning, an initiative designed to distribute institutional training to the Total Army in a more efficient and economical manner. However, training is not the sole measure of readiness. The budget also addresses sustainment, quality of life, and installation maintenance: all critical components of a trained and ready force. To meet the security needs of the nation, the Army maintains a balance of active Army, Army National Guard and Army Reserve units and personnel. Active units form the bulk of early deploying forces during a contingency operation, while high priority Guard and Army Reserve units provide augmentation support and essential capabilities not found in the active force. As an operation continues, a larger portion of the force comes from the reserve component. The Guard and Reserve also play an increasingly important role in peacetime engagement missions, such as peacekeeping and humanitarian and civil assistance operations, while continuing to respond to domestic emergencies. As such, RC readiness has experienced a marked increase since the end of the Cold War era. As the Army increases its reliance on the RC in all spectrums of operations, we have increased those readiness accounts and focused resources on our first-to-deploy units. A. Operating Tempo: The Army's ground OPTEMPO and flying hour program have been funded to meet Defense Planning Guidance specified readiness levels with acceptable risk. In Fiscal Year 1998, the budget supports ground OPTEMPO of 800 miles per year for the M1 Abrams Tank (934 miles for the M2 Bradley Infantry Fighting Vehicle, and 1,309 miles for the M3 Bradley Cavalry Fighting Vehicle) and an average of 14.5 flying hours per attack helicopter (as well as the armed OH58D helicopters, and a limited number of UH60 helicopters) crew per month (14.0 over all average flying hours per all other helicopter crews per month) for the active component. In selected units, OPTEMPO miles include live as well as a small number of Close Combat Tactical Trainer (simulator) miles. The Fiscal Year 1998 budget supports 146 miles and 6.4 flying hours for the National Guard, and 112 miles and 9.0 flying hours for the Army Reserve. The Operations and Maintenance, Army budget will support 12 brigade rotations (11 AC and 1 RC) through the National Training Center, 10 brigade rotations (9 AC and 1 ARNG) through the Joint Readiness Training Center, and five brigade rotations through the Combat Maneuver Training Center. Additionally, the Battle Command Training Program will train 13 corps/division commanders and staffs. B. Institutional Training. The Fiscal Year 1998 budget funds the Army's Training Modernization Program, called Army Training XXI. Army Training XXI is the umbrella concept for total Army training in the 21st Century. It incorporates the spectrum of Army training and education from the individual through corps level, integrating institutional, self-development, and collective training initiatives. Army Training XXI represents the training strategy that will prepare Army forces to exploit new operational concepts, capabilities, and systems on future battlefields. Through an initiative called "Future Army Schools - 21st Century," the Army is establishing a Total Army School System (TASS) with fully accredited and integrated active Army, Army Reserve and National Guard schools. Each component is expanding its efforts to reduce duplication, share information and resources, and make the tough decisions on necessary organizational change. TASS will provide the Total Army a school house that shares the training load, uses certified instructors, meets equal accreditation standards and teaches standard courses. Distance Learning Technology will further enhance operation of TASS and provide high quality, standardized training to soldiers and civilians. TASS will be implemented in Fiscal Year 1998. It is today's training that will enable leaders to leverage tomorrow's leap ahead technology. C. Sustainment: Supplying and maintaining equipment for our soldiers is essential to overall readiness. The Fiscal Year 1998 budget supports sustainability by funding an executable depot maintenance program as well as logistics support programs such as second destination transportation, supply depot operations, the Conventional Ammunition Program, and War Reserves. D. Quality of Life. The budget further contributes to force readiness by providing a quality of life structure for our soldiers, civilians, and their families. This structure includes family programs such as Child Development Centers, the Exceptional Family Member Program, Army Community Services and youth programs. The quality of life structure also includes maintenance and repair of housing for single and married soldiers as well as renovation of substandard barracks and housing. E. Facilities: Our posts, camps and stations provide the platform needed to train and launch today's power projection Army. The Fiscal Year 1998 budget ensures this platform will be fully operational by funding key projects such as the repair of railroad tracks, missile sheds and airfields. The budget also funds base support components to include communications, engineering and public works, and minor repairs and maintenance. II. QUALITY FORCE AND FORCE REALIGNMENT The Fiscal Year 1998 budget continues to emphasize quality personnel as the key ingredient to the best force possible. Maintaining pay incentives, fostering upward mobility, and improving quality of life are essential to obtaining and retaining a quality force. A. Military Personnel: The Fiscal Year 1998 budget supports an active component force of 495,000. Since the drawdown has been completed, this figure is unchanged from Fiscal Year 1997. A. The Army National Guard end strength will be 367,000 in Fiscal Year 1998, unchanged from Fiscal Year 1997. There has been a three percent decrease in the Army Reserve strength from Fiscal Year 1997 to Fiscal Year 1998. This reduction to 208,000 completes the Army Reserve drawdown. B. Civilian Personnel: The Army will reduce the civilian work force to an end strength of approximately 245,000 in Fiscal Year 1998, down about 3 percent from Fiscal Year 1997. III. MODERNIZATION Modernization is a critical component of the Army's strategy to maintain a comprehensive ability to defeat any current or foreseeable military threat with minimum casualties. Modernization of Army weapon systems and equipment is managed through a continuous process of change and growth, selectively upgrading existing capabilities, and when necessary, replacing technologically obsolete assets with more capable systems. The Army's modernization management challenge is to obtain technological superiority and improve force capability during a time of reduced resources and major transitions in the Army's size, structure and missions. The Army's approach is to: •Identify and prudently manage the cost and scheduling risks associated with both the development of new technologies and the production of weapon systems. •Maximize the use of horizontal technology integration. •Insert advanced technology through selective system upgrades. •Invest in and accelerate programs that reduce operation and support costs. •Maintain a robust science and technology base. •Ensure the continued existence of a viable, productive, and responsive military industrial base. •The Army is continuing to fulfill high priority research, development and acquisition needs. The following two sections are representative of the Army's major efforts in modernization. A. Procurement Appropriations 1. The Fiscal Year 1998 budget continues the upgrades to the Abrams tank and the Bradley Fighting Vehicle. The budget continues funding for a 120-per-year multi-year contract for the Abrams Upgrade program. These programs increase mobility, survivability and lethality over existing systems. These warfighting improvements are crucial to the Army's overall ability to defeat any current or foreseeable ground combat threat. The critical need for these systems is a lesson that the Army learned during its experience in Operation Desert Storm. 2. The Fiscal Year 1998 budget provides funding for the close combat, air defense and deep battle missile programs. This funding allows for a continued procurement of Longbow Hellfire and Army Tactical Missile System Block 1A. Additionally, Fiscal Year 1998 funds the first year of procurement for the Brilliant Anti-Armor Submunitions and Patriot Advanced Capability - Level 3 missiles. The budget also provides for a second year of full-rate production multi-year procurement for Javelin and modifications to Multiple Launch Rocket System, Stinger and TOW. 3. The Fiscal Year 1998 budget supports aviation programs that will modernize, upgrade and replace existing equipment. This includes modifying basic Apache helicopters to the Longbow Apache configuration, armed with an improved radar guided Hellfire missile possessing fire-and-forget capability. These improvements substantially increase weapon system effectiveness and aircraft survivability. The budget provides funding for continued procurement of 18 Black Hawk helicopters in Fiscal Year 1998. 4. Funding for the Family of Medium Tactical Vehicles in the Fiscal Year 1998 budget supports continued production. FMTV modernizes the medium tactical vehicle with state-of-the-art automotive technology trucks to fill shortages and replace obsolete, overaged and maintenance-intensive trucks. 5. The Fiscal Year 1998 budget continues the requirements contract for the procurement of the High Mobility Multi-purpose Wheeled Vehicle. Funding allows the Army to support the expanding mission of the HMMWV in contingency operations. These new missions have generated the need to increase payload and protection levels for the HMMWV. 6. The Fiscal Year 1998 budget provides training ammunition and advanced 120mm tank rounds for the Army and reduces the ammunition demilitarization backlog. The Fiscal Year 1998 budget supports production of the Army's newest smart munitions, the Sense and Destroy Armor Munitions. SADARM provides a target activated, fire-and-forget capability against armored targets for 155mm howitzer systems. 7. The Fiscal Year 1998 budget continues funding for satellite communications systems, including the Defense Satellite Communications System; SHF Tri-Band Advanced Range Terminal; Enhanced Manpack UHF Terminal, also known as Spitfire; Army Milstar programs; Single Channel Anti-Jam Manportable Terminal and Secure Mobile Anti-Jam Reliable Tactical Terminal; and NAVSTAR Global Positioning System. Other critical communications systems have been accelerated significantly, including the Single Channel Ground & Airborne Radio System combat net radio and the Enhanced Position Location Reporting System data radio. These systems provide essential capabilities to the warfighter as quickly as possible. Other communications systems and command and control programs such as the All Source Analysis System, Advanced Field Artillery Data System , Army Global Command & Control System, Forward Area Air Defense Command & Control System and Maneuver Control System are also funded. 8. A summary of the Procurement major system quantities follows: MAJOR SYSTEM QUANTITIES MULTI- SYSTEM FY97 FY98 FY99 YEAR PROGRAM BLACKHAW 34 18 12 NO LONGBOW APACHE 24 44 66 YES JAVELIN 1,020 1,080 3,316 YES LONGBOW HELLFIRE 1,005 1,465 2,000 YES (FY99) ATACMS BLOCK IA 97 153 160 YES ATACMS BLOCK II 0 0 50 NO BAT 0 305 547 NO PAC-3 0 52 68 NO M1 TANK UPGRADE 120 120 120 YES M2A3 BRADLEY 35 18 78 NO SADARM 600 507 1,085 NO SINCGARS 30,093 28,555 0 NO HMMWV 1,515 774 110 NO FMTV 1,807 1,506 2,204 YES B. Research, Development, Test and Evaluation Appropriation The Army Science & Technology program in Fiscal Year 1998 is focused on supporting affordable options to achieve the capabilities envisioned for Force XXI, Army Vision 2010 and the Army After Next Project with emphasis on demonstration of promising technologies with warfighter application. The Army continues to maintain a strong and stable S&T program in order to ensure the timely development and transition of technology into weapon systems and system upgrades, and to explore alternative concepts in future global, capabilities-based warfighting. The Army S&T program emphasizes: 1) technology insertion via upgrades to existing platforms; 2) support of Joint Chiefs of Staff future warfighting capabilities and Force XXI Advanced Warfighting Experiments; 3) evaluation of the impact of advanced technology concepts on Doctrine, Training, Leader Development, Organization, Materiel, and Soldiers; and 4) management through the Army Science and Technology Master Plan. The following major RDT&E efforts are supported in the Fiscal Year 1998 budget: 1. The RAH-66 Comanche helicopter will provide the Army with new capability to conduct armed reconnaissance during both day and night in adverse weather, a long-standing need for the Army. The Comanche will significantly expand the Army's ability to conduct operations in all types of combat scenarios and battlefield environments while providing increased crew survivability through its low observable technology. The Fiscal Year 1998 budget supports testing of two prototype aircraft and development of the advanced T801 engine, composite air vehicle and Mission Equipment Package. 2. The Crusader (formerly known as Advanced Field Artillery System and the Future Ammunition Resupply Vehicle) will provide commanders with increased accuracy, rate of fire, survivability, mobility and ammunition handling speed with decreased crew size. These systems will displace the M109A6 Paladin self-propelled Howitzer and M992 Field Artillery Ammunition Supply Vehicle in Force Package I units. 3. Missile systems under current development include the Brilliant Anti-Armor Submunitions, Multi-Purpose Individual Munition/Short Range Assault Weapon, Enhanced Fiber Optic Guided Missile, Line-of-Sight Antitank Missile, Guided MLRS, Stinger, and Follow-on to TOW. All of these programs are designed to leverage technology and provide soldiers with superior firepower. 4. Research and development continues on the Army Battlefield Communications System hardware and software. This system provides improved command and control among five battlefield functional areas from the corps level to the soldier's foxhole. These five systems include the Maneuver Control System; Advanced Field Artillery Tactical Data System; All Source Analysis System; Forward Area Air Defense Command and Control; and the Combat Service Support Control System. ABCS will serve as a combat force multiplier by permitting the commander to control his resources more effectively and communicate in a hostile electronic countermeasure environment. 5. The Joint Surveillance Target Attack Radar System is supported in Fiscal Year 1998 to continue limited production of the Common Ground Station and to initiate full scale production following a successful Initial Operational Test & Evaluation scheduled for late Fiscal Year 1997. The JSTARS system has been a major contributor to conducting peacekeeping operations in Bosnia. Again, the system has proven that its near real-time information collection capabilities play a critical role in total intelligence production and dissemination during peacetime and will provide commanders superior targeting and battle management capabilities in combat operations in the future. 6. The Fiscal Year 1998 budget supports All Source Analysis System software development, Defense Satellite Communications Programs upgrades, Electronic Spitfire Warfare Programs and Night Vision Systems development. We also continue MILSTAR SMART-T low rate initial production and SCAMP Block I procurement. 7. The Fiscal Year 1998 budget provides continued funding for Force XXI Initiatives begun in Fiscal Year 1997. Force XXI Initiatives are part of Army's Acquisition Reform Initiatives. The Army will use Force XXI Initiatives to evaluate candidate systems (materiel fielding items, prototype items, and concept/emerging technology items) to jump start technology and put proven technology into the hands of soldiers while achieving significant time and dollar efficiencies. The process for Force XXI Initiatives funding is the Warfighting Rapid Acquisition Program. The Army established WRAP to accelerate fielding of systems and technology to meet a compelling need that emerges from successful battle lab experiments, Advance Warfighting Experiments, Advanced Technology Demonstrations, Advanced Concept Technology Demonstrations or similar demonstrations and evaluations. IV. CONSTRUCTION The Fiscal Year 1998 budget for Military Construction, Family Housing, and Base Realignment and Closure provides new and renovated facilities needed to improve Army readiness, quality of life, and efficiency. The Military Construction budget continues to focus on facilities that upgrade the capabilities of Army installations as power projection platforms. New facilities include strategic mobility infrastructure, computerized training simulators, modernized barracks and an overseas prepositioning site. The Family Housing budget includes the construction and revitalization of housing as well as the operation and maintenance of Army family housing world-wide. The Base Realignment and Closure budget provides new facilities at gaining installations for activities that must move due to BRAC realignment. In addition, the BRAC budget also provides funds to close selected facilities. These actions are an important element in the Army's continuing efforts to reduce costs and operate more efficiently. A. Military Construction: The Military Construction budget for the active Army and reserve components is $687 million. Representative programs in several key areas are listed below. 1. The Whole Barracks Renewal Program, which will improve the living conditions of single soldiers, is supported at a level of $338 million in Fiscal Year 1998. Major projects are located at: # Spaces $M Schofield Barracks, HI 288 44.0 Fort Campbell, KY 336 37.0 Camp Humphreys, Korea 632 32.0 Fort Lewis, WA 300 31.0 Fort Knox, KY 312 22.0 Fort Gordon, GA 288 22.0 Ansbach, Germany 187 22.0 2. Strategic Mobility and prepositioning capability are improved with the following: $M SW Asia Strategic Prepositioning Site 37.0 Concord NWS, CA Ordnance Support Area 23.0 Charleston NWS, SC Strategic Maintenance Complex 7.7 Crane AAA, IN Ammunition Containerization 7.7 3. Mission and training requirements are supported, to include: $M Fort Leavenworth, KS US Disciplinary Barracks 63.0 White Sands, NM Range Control Center 18.0 Fort Carson, CO Close Combat Trng Facility 7.3 Fort Riley, KS Close Combat Trng Facility 7.3 4. Environmental programs are supported to include: $M Fort A.P. Hill, VA Central Wash Facility 5.4 Fort Lewis, WA Erosion Mitigation 2.0 5. Reserve component readiness is improved as follows: $M Fort McCoy, WI Army Reserve Trng Center 14.9 Sacramento, CA Army Reserve Ctr Org Maint 13.1 Camp Atterbury, IN Multi-Purpose Trng Range 10.2 Camp Dodge, IA Battalion Complex 4.5 6. The budget includes investments in barracks construction of $76 million in Korea and $43 million in Germany to improve the standard of living for our soldiers. Other major construction requirements at overseas installations will be addressed primarily through Residual Value negotiations and burden sharing rather than through direct appropriations. B. Army Family Housing: The Fiscal Year 1998 Army Family Housing budget provides for operating and maintaining family housing and for whole-neighborhood revitalization of military family housing by either replacement construction or major renovation to bring dwelling units up to contemporary standards. 1. The Fiscal Year 1998 budget requests $88.7 million to replace 779 family housing units with 583 new units at five locations where it is more economical to replace the units than to renovate the existing housing, and acquire eight new units in Miami, Fla. An additional $44.8 million will fund six whole neighborhood revitalization projects of 455 dwelling units. Fiscal Year 1998 Army Family Housing projects are listed below: New Construction $M 8 units Miami, FL 2.3 Replacement Construction $M 132 units Schofield Barracks, HI 26.6 56 units Fort Meade, MD 7.9 32 units Fort Bragg, NC 3.4 142 units Fort Bragg, NC 16.8 91 units Fort Bliss, TX 12.9 130 units Fort Hood, TX 18.8 Construction Improvements $M 120 units Fort Benning, GA 13.0 120 units Fort Riley, KS 7.9 51 units Fort Monmouth, NJ 5.1 38 units Vilseck, Germany 5.2 72 units Mannheim, Germany 8.3 54 units Stuttgart, Germany 5.3 2. The Fiscal Year 1998 Army Family Housing budget also requests $1.3 billion for operating and maintaining approximately 133,000 military family housing units, world-wide. This amount includes $468 million for maintenance and repair, which meets 72 percent of requirements and provides for major repairs on approximately 2,600 dwellings and adequate recurring maintenance to prevent unit closures. C. Fiscal Year 1998 Base Realignment and Closure: The budget includes $83.1 million for construction in support of BRAC. The request reflects a decision by the Army to accelerate BRAC IV actions to the maximum extent possible within available resources. Installation Project $M BRAC III Ft. Bliss, TX Repair Aircraft Hanger 3.6 BRAC IV Ft. Wainwright, AK Missile Test Facility 0.6 Camp Parks, CA Army Reserve Center 9.5 Sierra Army Depot, CA Consolidated Security 0.9 Travis AFB, CA Admin Facility 2.2 Fitzsimons AMC, CO Sanitary Sewer 2.1 Ft. Carson, CO Admin Facility 2.5 Ft. Detrick, MD Health Clinic 0.6 Ft. Meade, MD Admin Facility 6.3 Detroit Arsenal, MI Storage Facility 5.9 Ft. Leonard Wood, MO Training Ranges 17.5 Ft. Leonard Wood, MO Training Facilities 6.9 Ft. Totten, NY Storage Facility 1.9 Hawthorne AAP, NV Warehouse 1.6 Nellis AFB, NV Admin Facility 3.8 Shephard AFB, TX Training Facility 10.2 Ft. Pickett, VA Army Reserve Center 3.1 Letterkenny AD, PA Renovate Admin Facility 2.6 Ft Detrick, MD Operations Facility 1.6 Ft Detrick, MD Admin Facility 1.4 V. MANAGEMENT INITIATIVES During the Base Realignment and Closure process, the Army strives to alleviate hardships by shortening the period of turbulence that accompanies the movement of units; to obtain fair market value for disposed properties as allowed by law; and to realize quickly the savings made possible by consolidations. In addition, our efforts support the President's Five Point Program for Community Reinvestment, particularly with regard to access to transition assistance and retraining in order to prepare individuals to reenter the local economy. These efforts aid in the economic recovery of local communities affected by the DoD downsizing. The Army continues to work on obtaining efficiencies in facilities and community services through privatization and partnerships with civilian communities. Many installations are either studying or working on transferring their water and wastewater facilities to local communities and their electric and natural gas systems to public utility companies. Legislative language will be submitted with the President's Budget to facilitate the privatization process for all installation utilities. At several installations, the Army is working on initiatives to privatize the capitalization and management of family housing and other community services for the soldier. VI. ARMY WORKING CAPITAL FUND OPERATIONS Activities within the Army Working Capital Fund (formerly the Defense Business Operations Fund) are an integral part of the Army's budget and an important aspect of the readiness and sustainability of capabilities-based operating forces. In Fiscal Year 1998, the Army will purchase fuels, repair parts, consumable supplies, depot maintenance services and information management services from AWCF activities. The Army has a dual role in AWCF operations. First, the Army operates assigned activities for supply management, depot maintenance, ordnance and Army information services. The Army's philosophy is to deliver goods and services to its customers with the quality and timeliness they demand at the lowest possible cost. The supply activity ensures that spare parts are available in a timely manner in order to maintain unit readiness, while working simultaneously to reduce inventory levels. The depot maintenance activity performs major overhaul and repair of end items and reparable secondary items; the ordnance activity manufactures, renovates, and demilitarizes materiel for all branches of DoD. The information services activity provides development and operational sustainment of automated information systems. In Fiscal Year 1998 the AWCF activities are estimated to have $11.4 billion in sales. Second, the Army is a major customer of all Defense Working Capital Fund activities -- Army as well as non-Army activities. As a customer, the Army acquires goods and services to sustain training and readiness at the lowest possible cost. The Army is an active member of the DoD DWCF Corporate Board and is fully involved in the Board's continuing review and improvement of policies and procedures. In Fiscal Year 1998, the supply management activity is replenishing fewer stocks than are sold. The savings generated from this difference between sales and replenishment is being returned to the customers in the form of reduced prices. In the depot maintenance, ordnance, and information services activities, customer revenue rates are set per direct labor hour. These rates are stabilized so the customers' buying power is protected in the year of execution. Although the Fiscal Year 1998 depot rates increase over Fiscal Year 1997, they are still lower than the Fiscal Year 1995 rates. Fiscal Year 1998 Ordnance rates are considerably lower than Fiscal Year 1997 rates because of better than projected Fiscal Year 1996 operating results. VII. ARMY ENVIRONMENTAL PROGRAM Army policy mandates that all current operations comply with federal, state, local and applicable host nation environmental standards. Our commitment to this policy is reflected in the $1.3 billion included in the Fiscal Year 1998 budget request for environmental requirements. This request is displayed in various Operations and Maintenance appropriations ($576 million), Environmental Restoration, Army Account ($377 million), Base Realignment and Closure Account ($192 million), Research, Development, Testing and Evaluation ($84 million), Procurement appropriations ($75 million), Army Capital Working Fund (the Army's portion of the former Defense Business Operating Fund) ($36 million), and other appropriations ($19 million). The funds will pay for environmental compliance, conservation of natural and cultural resources and pollution prevention at Army installation worldwide. The budget also provides support to correct violations, meet existing and new environmental standards and dispose of hazardous wastes. VIII. SUMMARY The Fiscal Year 1998 budget is the result of a very careful assessment by the Army of needs and priorities. The balance this budget creates between maintaining quality soldiers, training and sustaining supports near term readiness and maintains a full spectrum force. The Army continues to seek efficiencies to improve its financial posture and to enhance modernization efforts and soldiers' quality of life. This budget reflects today's fiscal realities, but it also reflects the Army's continuous process of change and growth and its commitment to the American people. That commitment is to support the nation, while globally engaged, as the Army has for over 220 years, and to ensure that her sons and daughters are trained and equipped to carry out any mission today, and into the 21st Century. ARMY BUDGET TOTAL OBLIGATION AUTHORITY (CURRENT DOLLARS IN BILLIONS) APPROPRIATION FY97 FY98 FY99 MILITARY PERSONNEL 26.0 25.7 26.3 OPERATIONS & MAINTENANCE 20.9 20.7 20.5 PROCUREMENT 8.1 6.7 8.2 RESEARCH, DEVLMT, TEST & EVAL 4.9 4.5 4.5 MILITARY CONSTRUCTION 0.7 0.7 0.8 ARMY FAMILY HOUSING 1.4 1.3 1.3 BRAC 0.4 0.4 0.5 DEF ENVIRON RESTORATION ACT 0.3 0.4 0.4 TOTAL 62.7 60.4 62.5