FOR IMMEDIATE RELEASE No. 99-008 Feb. 1, 1999 THE ARMY BUDGET FISCAL YEAR 2000 The Army today announced details of its budget for Fiscal Year 2000, which requests $67.4 billion in Total Obligation Authority from the U.S. Congress. This money, when appropriated by Congress, would provide the resources for the Army from Oct. 1, 1999 to Sept. 30, 2000. FY 00 TOTAL OBLIGATION AUTHORITY ( IN BILLIONS) APPROPRIATION FY00 MILITARY PERSONNEL 27.8 OPERATIONS & MAINTENANCE 22.9 PROCUREMENT 8.6 RESEARCH, DEV, TEST & EVAL 4.4 MILITARY CONSTRUCTION 0.7 ARMY FAMILY HOUSING 1.1 BRAC 0.2 DEF ENVIRON RESTORATION ACT 0.4 CHEMICAL DEMILITARIZATION 1.2 DEFENSE WORKING CAPITAL FUND, ARMY 0.1 TOTAL 67.4* *these figures may not add due to rounding The turn of the Century will mark a turn in direction for Army resources as reflected in the Fiscal Year 2000 budget. Recent annual funding levels have remained relatively constant despite an increased operational pace and a growing risk in sustaining readiness. Funding increases in this budget, representing a real increase of approximately 1.4 percent over Fiscal Year 1999, will preserve near-term readiness and sustain the Army’s dominance as the world’s premier land force. The Fiscal Year 2000 budget supports the Army’s vision and commitment to maintain a total quality force of Active, Reserve, and National Guard soldiers and civilians. It supports the "shape, respond, prepare" strategy validated by the Quadrennial Defense Review and adequately resources the Army in the near term to accomplish its mission requirements set forth in the National Security and Military Strategies. The budget emphasizes the warfighting priorities established by the Department of Defense (DoD), while significantly improving the quality of life for our most precious assets – America’s sons and daughters – our soldiers and their families. These quality of life enhancements are best demonstrated by the resourced commitment to improve pay and retirement and significantly improve base operations support funding. The budget has been carefully balanced to enhance readiness, preserve modernization efforts, integrate the force structure, and improve quality of life. It provides for operational training that is still superior to that of any other nation in the world. At the same time, critical modernization programs such as Crusader, Comanche, Longbow Apache, Longbow Hellfire, Army Tactical Missile System-Brilliant Anti-Tank (ATACMS-BAT), Abrams Tank Upgrade, and the Family of Medium Tactical Vehicles (FMTV) continue to move forward. Moreover, the Army’s digitization strategy, which will ensure information dominance, situational awareness, and combat overmatch, is adequately funded in this budget. The Fiscal Year 2000 budget and its funding increases promote a fully integrated force structure. Increased training and infrastructure support in the U.S. Army Reserve and sustained implementation of the Army National Guard Division Redesign Study are two examples. The budget improves upon quality of life programs in Fiscal Year 2000. At the forefront are a 4.4 percent pay raise, a return to the standard military retirement system, and an acceleration in funding for our barracks program buy-out from Fiscal Year 2012 to Fiscal 2008 worldwide. This budget also begins the Army’s move toward the more efficient and effective privatization of family housing through the Residential Communities Initiative (RCI) program. The Army fully endorses Defense Secretary William Cohen’s efforts to reduce the Department’s infrastructure and overhead to ensure resources are available to support future readiness and force structure. Therefore, the Army strongly endorses the proposal for two additional Base Realignment and Closure (BRAC) rounds. The Army’s budget is in consonance with the DoD Reform Initiatives and the Revolution in Business Affairs. This budget pursues a variety of management initiatives such as acquisition reform, streamlining civilian personnel administration, logistics improvement, reinvention laboratories, and competition/privatization to produce efficiencies and streamline operations. The Fiscal Year 2000 budget also includes $1.4 billion in transfers of Defense-wide programs to the Army (e.g., Chemical Demilitarization, Commissaries). I. READINESS The Fiscal Year 2000 budget request supports the Army’s readiness objectives by providing adequate funding of ground Operating Tempo (OPTEMPO) and flying hour program requirements. These programs fund tough, realistic training at home stations, combat training centers, and joint and combined exercises. Fiscal Year 2000 represents the third year of the Army’s long-range plan to leverage training device and simulation technology to enhance combat readiness. However, training is not the sole measure of readiness. The budget also addresses sustainment of our logistics support system, quality of life for our soldiers and the civilian workforce, and the maintenance of our power projection platform and supporting installations -- all critical components of a trained and ready force. A. Operating Tempo: In Fiscal Year 2000, the budget supports ground OPTEMPO of 800 home station training miles per year for the M1 Abrams Tank (934 miles for the M2 Bradley Infantry Fighting Vehicle, 970 miles for the M3 Bradley Cavalry Fighting Vehicle). It supports an average of 14.5 flying hours per aircrew per month for the active component and 17.8 hours per aircraft per month. Additionally, the level of funding implements the Army’s Aviation Restructure Initiative, which increased the number of crews per aircraft to fully utilize the capability of the modernized fleet. The Fiscal Year 2000 monthly flying hour funding level for the Active Component is $.8 billion (14.5/17.8 hours); for the National Guard: $.3 billion (9.0 hours); and for the Army Reserve: $.05 billion (9.5 hours). The Operations and Maintenance budget will support 10 brigade rotations (nine Active Component and one Army National Guard) through the National Training Center, 10 brigade rotations (nine Active Component and one Army National Guard) through the Joint Readiness Training Center, and five brigade rotations through the Combat Maneuver Training Center. Additionally, the Battle Command Training Program will train nine corps/division command groups and staffs. B. Institutional Training: The Fiscal Year 2000 budget continues to emphasize institutional training modernization. Army Training XXI (AT XXI) provides the framework to train from individual to Joint Task Force level. It incorporates the spectrum of Army training and education, integrating institutional, self-development and collective training initiatives. AT 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 XXI Century," the Army established a Total Army School System (TASS) with fully accredited and integrated Active Army, National Guard and Army Reserve schools. Each component is expanding its efforts to reduce duplication, share information and resources, and make the tough decisions on organizational change. Distance learning technology will further enhance the operation of TASS and provide high quality, standardized training to soldiers and civilians. The Fiscal Year 2000 budget provides funding to train additional pilots on modernized aircraft and for initial entry pilot training. This funding will provide additional training seats for AH-64A Apache pilots and retrain selected pilots to fly the AH-64D Apache Longbow to support the AH-64D fielding schedule. C. Mobilization Operations: The Fiscal Year 2000 budget includes funding for the 18 prepositioned ships afloat as part of the Army’s Strategic Mobility Program. The Army’s Afloat Prepositioned Ships Program is nearing completion. The final phase of the transition from the interim prepositioned ships fleet to the end-state, of the newly built Large, Medium Speed Roll-on/Roll-off (LMSR) ships, is scheduled for Fiscal Year 2001. There will be a total of 15 ships, including eight LMSRs. In Fiscal Year 2000 we will continue our infrastructure improvement program. These improvements facilitate movement of personnel and equipment from CONUS bases to sea and air embarkation points for rapid and efficient deployment. Projects are focused at designated CONUS Power Projection Platforms that include many of our installations, airfields, strategic seaports, and ammunition depots and plants. D. Sustainment: Supplying and maintaining equipment for the Army's soldiers is essential to overall readiness. The Fiscal Year 2000 budget supports sustainment by funding an executable Depot Maintenance Program, as well as logistics support programs such as Second Destination Transportation, Supply Depot Operations, War Reserve Secondary Items, the Conventional Ammunition Program, and Army Prepositioned Stocks. E. Quality of Life: The budget further contributes to force readiness by providing a quality of life structure for the Army's soldiers and civilians and their families. This structure includes financial management of Army commissaries and family programs such as child development centers, the Exceptional Family Member Program, Army Community Services and youth programs. For the second consecutive year, this budget meets the goal of funding child care centers to provide service for 65 percent of the child care demand. The quality of life also includes maintenance and repair of housing for single and married soldiers as well as the renovation of substandard barracks and housing. In addition, we are constructing physical fitness training facilities to improve the health and morale of our soldiers while promoting physical conditioning and ultimately unit readiness. Overall, quality of life will be enhanced by this budget. Efforts to attain greater pay equity and improve base operations support and maintenance are key areas with tremendous direct and indirect effects on improving our soldiers’ and their families’ daily lives. F. Facilities: Posts, camps and stations provide the platform needed to train and launch today’s power projection Army. The Fiscal Year 2000 budget ensures this platform supports the national strategy. The budget also sustains, with minor risk, base support infrastructure--to include communications, engineering and public works, and minor repairs and maintenance. Funds are provided to demolish old facilities excess to current needs. II. QUALITY FORCE AND FORCE REALIGNMENT The Fiscal Year 2000 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 2000 budget supports an endstrength of 480,000 Active Component, 350,000 Army National Guard, and 205,000 Army Reserve soldiers. The budget provides a 4.4 percent pay raise for all military personnel beginning Jan. 1, 2000. In addition to this across-the-board pay raise, the budget also contains a revision of the basic pay table. The intent of this initiative is to improve retention by providing increases to basic pay for mid-grade enlisted personnel and officers depending on length of service. This budget includes funds to restructure the "REDUX" retirement system implemented in 1986. The proposal would return all retirees to 50 percent of base pay, with some limits on Cost of Living Adjustments (COLA). B. Civilian Personnel: The Army will reduce the civilian work force to an endstrength of approximately 218,000 in Fiscal Year 2000, down about 2.8 percent from Fiscal Year 1999. This budget provides a 4.4% civilian pay raise. III. MODERNIZATION Modernization continues to be a critical component of the Army’s ability to support the National Military Strategy and its effort 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 that encourages innovation, imagination and responsible risk-taking. The near-term Army Modernization Strategy is to focus on information dominance, maintenance of combat overmatch and recapitalization of aging systems. This short-term focus allows the Army to pursue leap-ahead science and technology concepts required to field Army XXI and the Army After Next. The Quadrennial Defense Review validated the Army modernization objectives and programs, supported additional resources for the digitization of the force to achieve information dominance on the battlefield, and increased modernization of the Army Reserve and National Guard. The following three sections are representative of the Army’s major efforts in modernization. A. Procurement Appropriations: 1. The Fiscal Year 2000 Procurement budget requests $8.6 billion. It continues modernization upgrades to the Abrams tank ($646 million) and the Bradley Fighting Vehicle ($346 million). It fully funds the first year of the four-year multi-year procurement for the Bradley. It also funds the final year of the current multi-year contract for the Abrams and requests funding for the follow-on multi-year 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. 2. The Fiscal Year 2000 budget provides funding for the close combat, air defense and deep battle missile programs. This funding allows for continued procurement of the Army Tactical Missile System Block 1A and funds the multi-year contracts for the Longbow Hellfire and the Improved Target Acquisition System for the Tube-Launched, Optically Tracked, Wire-Guided Missile (TOW). Additionally, Fiscal Year 2000 funds continue to procure Brilliant Anti-Armor Submunitions; support the third production year of the multi-year procurement for Javelin; fund Low Rate Initial Production (LRIP) for the Multiple Launch Rocket System (MLRS) upgrade (M270A1); and support the Engineering and Manufacturing Development (EMD) effort for the Guided MLRS. 3. The Fiscal Year 2000 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 also provides funding for procurement of eight Black Hawk helicopters for the Army National Guard in Fiscal Year 2000. 4. Funding for the Family of Medium Tactical Vehicles (FMTV) in the Fiscal Year 2000 budget supports continued truck production. FMTV modernizes the medium tactical vehicle fleet with state-of-the-art automotive technology to fill shortages; improve tactical mobility and deployability; and replace obsolete, overaged and maintenance-intensive trucks. 5. The Fiscal Year 2000 budget provides training ammunition and eight modern types of war reserve ammunition items. The budget also provides a modest reduction to the ammunition demilitarization backlog and supports production of the Army’s newest smart munition, the Sense and Destroy Armor (SADARM). The SADARM provides a target activated, fire-and-forget capability against armored targets for 155mm howitzer systems. 6. The Fiscal Year 2000 budget continues funding for satellite communications systems, including the Defense Satellite Communications System; Super-High Frequency (SHF) Tri-Band Advanced Range Terminal; Enhanced Manpack Ultra-High Frequency (UHF) Terminal (also known as Spitfire); Army MILSTAR programs; Single Channel Anti-Jam Manportable-Block I Terminal and Secure Mobile Anti-Jam Reliable Tactical Terminal; and NAVSTAR Global Positioning System. The Enhanced Position Location Reporting System data radio was accelerated. Fiscal Year 2000 introduces Block II software for the All Source Analysis System and Block IV software for the Maneuver Control System. These systems provide essential capabilities to the warfighter as quickly as possible. Other communications systems and command and control programs such as the Advanced Field Artillery Tactical Data System, the Army Global Command & Control System, and the Forward Area Air Defense Command & Control System are also funded. 7. A summary of the procurement major system quantities follows: SYSTEM FY98 FY99 FY00 FY01 MULTI-YR PROGRAM LONGBOW APACHE 44 66 74 60 YES LONGBOW HELLFIRE 1100 2000 2200 2200 YES JAVELIN 894 3569 2682 3973 YES MLRS LAUNCHERS 21 24 47 90 NO ATACMS BLOCK IA 109 96 110 100 NO ATACMS BLOCK II 0 30 61 77 NO BAT 0 420 846 1028 NO M1 TANK UPGRADE 120 120 120 80 YES M2A3 BRADLEY 18 73 104 149 YES SADARM 300 100 227 460 NO FMTV 1179 1439 2179 2577 YES FHTV 286 489 450 404 NO 8. The Fiscal Year 2000 budget continues the Army’s commitment to modernize the Reserve Component. Following is funding for major systems for the Reserve Component (excludes serviceable equipment cascaded from active units): SYSTEM COMPONENT FY99 FY00 FY01 AVENGER ARNG 20 20 18 SENTINEL ARNG 24 11 3 BLACKHAWK ARNG 17 8 9 HEAVY EQUIP TRANSPORT ARNG/USAR 153/0 97/24 153/0 GRENADE LAUNCHER ARNG/USAR 300/313 718/367 353/228 ADVANCED FIELD ARTY TACTICAL DATA SYSTEM ARNG 110 141 154 TRUCK LINE HAUL ARNG/USAR 305/0 61/283 213/22 LOGISTICS SPT VESSEL USAR 0 1 0 DEUCE USAR 0 28 29 B. Research, Development, Test and Evaluation (RDTE) Appropriation: The Army requests $4.4 billion for the FY2000 RDTE portion of the budget. This continues a strong and stable Science and Technology (S&T) program with a balanced and dynamic portfolio of technology investments to enable the modernization and transformation of the Army in the 21st century. The Army S&T program provides technology insertion via upgrades to existing platforms and emphasizes innovative and affordable options to achieve the advanced capabilities envisioned for Army Vision 2010 and Army After Next. The S&T program also focuses on leveraging related technology research and development performed by the commercial sector, other Services and other government agencies. Effective in Fiscal Year 2000, RDTE base support funding (base operations, real property services, real property maintenance, environmental compliance, conservation, and pollution prevention resources ($461 million) transferred to the Operation and Maintenance, Army, appropriation. The following major RDT&E efforts are supported in the Fiscal Year 2000 budget: 1. The RAH-66 Comanche helicopter will provide the Army with a 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 low observable technology. The Fiscal Year 2000 budget supports testing of two prototype aircraft and development of the advanced T801 engine, composite air vehicle and Mission Equipment Package. 2. The Crusader system is the Army’s next generation self-propelled howitzer (SPH) and artillery re-supply vehicle (RSV), designed to support Army XXI and the Army After Next. Crusader will incorporate advanced technologies to increase rate-of-fire, accuracy, mobility and ammunition-handling, while reducing ownership costs and crew size. This system will provide the firepower required to support the force commander’s goals of dominating the maneuver battle, leveraging information dominance, and protecting the force. The Crusader system will displace the M109A6, Paladin SPH, and the Field Artillery Ammunition Supply Vehicle (M992). 3. Missile systems under current development include the Brilliant Anti-Armor Submunition P3I, Multi-Purpose Individual Munition/Short Range Assault Weapon, High Mobility Artillery Rocket System, Line-of-Sight Antitank Missile, Guided MLRS, Stinger, and ATACMS Block II. All of these programs are designed to leverage technology and provide soldiers with overmatching lethality. 4. The Army's Digitization strategy represents a substantial investment (approximately $2.8 billion in Fiscal Year 2000 across the Procurement, RDT&E and OMA appropriations) and provides a significant improvement in command and control capability for the Army's forces. A digitally networked Army provides a fully integrated command and control capability from the regional Commander-in-Chief (CINC) to the soldier. The focus of the strategy is on capability enhancement rather than individual systems. Force XXI Battle Command Brigade and Below (FBCB2) is the cornerstone digital command and control system for mounted and dismounted combat, combat support and combat service support commanders, leaders and soldiers. Digitization investments in Fiscal Year 2000 also include continued integration and development efforts with the Army Battle Command System; the communications backbone, sensors, and weapons platforms, to include the Abrams and Bradley programs; key aviation platforms like Longbow Apache and Kiowa Warrior and the Land Warrior program. Investments also include upgrades to Combat Training Centers instrumentation and support to operational tests and evaluations of digital systems. The Army plans on digitizing the first division in Fiscal Year 2000 and the first Corps in Fiscal Year 2004. 5. The Joint Surveillance Target Attack Radar System (JSTARS) is supported in Fiscal Year 2000 to continue limited production of the Common Ground Station and to initiate full-scale production following a successful Initial FY1999 Operational Test & Evaluation. The JSTARS system has been a major contributor to conducting peacekeeping operations in Bosnia and training exercises in Korea. 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 2000 budget supports All Source Analysis System (ASAS) software development, Defense Satellite Communications Programs upgrades, Electronic Spitfire Warfare Programs, and MILSTAR Secure Mobile Anti-jam Reliable Tactical Terminal (SMART-T) Night Vision Systems development. The Fiscal Year 2000 budget supports Block IV software development and digitization for the Maneuver Control System. The budget also provides for software upgrades and enhancements to refine the Tactical Exploitation of National Capabilities (TENCAP) common baseline. TENCAP provides the operational commander with enhanced battlefield intelligence products for contingency force development and deep battle targeting. C. The Fiscal Year 2000 requirements of the Chemical Demilitarization Program are funded in two separate appropriations: Chemical Agents and Munitions Destruction, Army (CAMD-A) and Military Construction, Army (MCA): 1. The CAMD,A budget request of $1.2 billion includes research and development ($334.0 million), procurement ($241.5 million), and operations and maintenance ($593.5 million). Significant program activities include continuing disposal operations at the Johnston Atoll Chemical Agent Disposal System and the Tooele Chemical Agent Disposal Facility; with chemical agent destruction to be completed in Fiscal Year 2000 and Fiscal Year 2003 respectively. The budget also supports continuing construction of disposal facilities at Anniston, Ala., Umatilla, Ore. and Pine Bluff, Ark.; completing final designs and facilities construction at Aberdeen, Md. and Newport, Ind.; and continuing environmental permitting, design, and supporting activities for construction of the Pueblo, Colo. and Blue Grass, Ky. facilities. The budget also includes funds to continue studies, analyses and equipment purchases for destruction of non-stockpile chemical warfare materiel, as well as funds to continue activities related to the Chemical Stockpile Emergency Preparedness Project. 2. The Fiscal Year 2000 MCA budget request of $267.1 million includes continuing construction of disposal facilities and activities at Anniston, Ala. (Phase VII); Umatilla, Ore. (Phase V); Pine Bluff, Ark. (Phase IV); Pueblo, Colo. (Phase I); Blue Grass, Ky. (Phase I and depot support); Aberdeen, Md. (Phase II); and Newport, Ind. (Phase II). IV. CONSTRUCTION The Fiscal Year 2000 budget for Military Construction, Family Housing, and Base Realignment and Closure (BRAC) provides new and renovated facilities needed to improve Army readiness, quality of life, and efficiency. The Military Construction projects improve strategic mobility, modernize barracks and support the diverse missions of active and reserve component soldiers. Projects are funded incrementally, with Fiscal Year 2000 appropriations to initiate work in the first year, and advance appropriations requested in Fiscal Year 2001 to complete construction. The Family Housing budget includes the construction and revitalization of housing overseas, as well as the operation and maintenance of Army family housing worldwide. The family housing on CONUS installations will be privatized and upgraded for rental by military families at a cost equal to their housing allowances. The BRAC budget provides new facilities at gaining installations for activities that must move due to BRAC mandated actions. In addition, the BRAC budget funds approved closure of facilities. BRAC actions are an important element in the Army’s continuing efforts to reduce costs and operate more efficiently. Military Construction: The Military Construction Budget for the Active Army and Reserve Component requests $1.5 billion in authorizations, with $695 million for appropriation in Fiscal Year 2000. The remaining $755 million is requested as advance appropriations in Fiscal Year 2001. This method of budgeting for construction projects allowed the Army to realign $700 million to other readiness needs in Fiscal Year 2000, while sustaining a continuous construction program. Representative construction projects in key areas are listed below with the total amounts of each project: 1. The Whole Barracks Renewal projects provide $505 million of construction to improve the living conditions of single soldiers. Appropriation of $81 million is requested to initiate construction in Fiscal Year 2000, with the remaining $424 million in Fiscal Year 2001. Major projects are requested for the following locations, showing the total project funding (FY2000 and FY2001) requirement: $M Fort Bragg, N.C. 74.0 Schofield Barracks, Hawaii 95.0 Germany, Various Locations 48.7 Fort Benning, Ga. 47.0 Fort Stewart, Ga. 46.0 Fort Eustis, Va. 39.0 Fort Campbell, Ky. 32.0 Camp Casey, Korea 31.0 Fort Hood, Texas 29.0 2. Strategic Mobility construction projects are requested totaling $176 million, including: $M Fort Hood, Texas Railhead Upgrade Phase 2 14.8 Fort Hood, Texas Aircraft Parking Apron 31.0 Fort Bliss, Texas Aircraft Loading Apron 22.0 Fort Bragg, N.C. Heavy Drop Rigging Facility 30.0 Fort Sill, Okla. Rail and Container Facilities 13.2 3. Mission and training requirements are supported by facilities, including: $M Aberdeen PG, Md. Chemical Demil Facility PH 2 66.6 -more- ARMY BUDGET 13/13/13/13 Pine Bluff AD, Ark. Chemical Demil Facility PH 4 61.8 Kwajalein Atoll Power Plant PH 2 35.4 West Point, N.Y. Cadet Physical Dev Ctr PH 2 28.5 Fort Leavenworth, Kan. US Disciplinary Barracks PH 3 18.8 Fort Bragg, N.C. Training Complex PH 2 7.0 Peterson AFB, Colo. Army Space Command Hqs 25.0 Fort Knox, Ky. Training Range PH 2 2.4 Fort Lewis, Wash. Physical Fitness Trng Ctr 6.2 4. Reserve Component readiness is improved by facilities, including: $M Barrigada, Guam USAR Center with Maint Shop (USAR) 1.1 Ft. Wadsworth, N.Y. (Ph 2) US Army Reserve Center (USAR) 2.1 Ft. Buchanan, Puerto Rico US Army Reserve Center (USAR) 1.4 Papago Mil Res, Ariz. Combined Spt Maint Shop (ARNG) 10.6 Greenville, Ky. Training Complex (ARNG) 5.4 Gowen Field, Idaho Readiness Center Addition (ARNG) 4.2 B. Army Family Housing: The Fiscal Year 2000 Army Family Housing budget requests $1.1 billion for operating and maintaining the Army’s 123,000 military family housing units worldwide. The budget also provides for the upgrade of Army housing by a combination of privatization in the U.S. and construction projects overseas. It includes $469 million for maintenance and repair and provides for major projects on approximately 1,000 dwellings. 1. The Fiscal Year 2000 Army Family Housing budget also requests $61 million for construction projects, $14 million appropriation requested in Fiscal Year 2000 and the remainder in Fiscal Year 2001. The projects are in Korea and Germany to support military families stationed overseas. New Construction No. Units $M Camp Humphreys, Korea 60 24.0 Major Improvements No. Units $M Baumholder, Germany 162 17.5 Hanau, Germany 64 7.0 Wiesbaden, Germany 198 8.1 -more- ARMY BUDGET 14/14/14/14 2. The Fiscal Year 2000 Army Family Housing budget does not contain funding for replacement construction or major renovation of family dwellings on U.S. installations. In keeping with the Army goal to eliminate all inadequate Army Family Housing by Fiscal Year 2010, the Army is privatizing family housing through the Residential Communities Initiative (RCI). This initiative allows the Army to obtain private sector capital to replace, renovate and maintain military housing units. Installations scheduled for privatization contract award in Fiscal Year 2000 are identified below: Installation No. Units Contract Award Date Fort Hood, Texas 5,482 February 2000 Fort Lewis, Wash. 3,590 April 2000 Fort Stewart/Hunter AAF, Ga. 3,159 June 2000 Fort Meade, Md. 2,862 August 2000 C. Base Realignment and Closure: The following BRAC related construction projects are being requested for Fiscal Year 2000. Location Project Amount ($M) Ft. McClellan, Ala. USAR Bldg Renovations 11.2 Ft. McClellan, Ala. Ammunition Transfer Point 1.6 Fitzsimmons AMC, Colo. Reserve Center 2.3 Ft. Leonard Wood, Mo. Expand Dining Facility 3.3 Camp Pedericktown, N.J. Sewage Plant Bypass 1.1 Tobyhanna AD, Pa. Missile Maintenance Facility 6.7 V. MANAGEMENT INITIATIVES The Army continues to pursue a variety of management initiatives designed to produce efficiencies and streamline operations. The Fiscal Year 2000 budget includes $1.4 billion in savings across all functional areas which have been reinvested in modernization and other high priority Army programs. The Army is aggressively managing the efficiencies taken to ensure projected savings are realized. The Army is also implementing the Government Performance and Results Act (GPRA) which calls for agencies to develop strategic plans and performance plans with measurable performance targets. Although the law requires reporting of these plans at the DoD level, the Army is modeling its plans on the DoD Strategic Goals which are -more- ARMY BUDGET 15/15/15/15 based on the Quadrennial Defense Review and will be updated in the upcoming DoD "Annual Report to Congress." VI. ARMY WORKING CAPITAL FUND The Army Working Capital Fund (AWCF) is an integral part of the Army’s budget, providing a financing vehicle for necessary goods and services at stabilized prices. Our AWCF funded activities are key contributors to the readiness and sustainability of Army forces. In Fiscal Year 2000, our forces will purchase over $10.9 billion in fuels, repair parts, consumable supplies, depot maintenance services, ammunition, and information management services from AWCF activities. The Army operates four working capital fund activity groups: Supply Management, Depot Maintenance, Ordnance, and Information Services. The Supply Management activity group ensures that spare parts are available and on time, to maintain unit readiness. The Depot Maintenance activity group performs major overhaul and repair of end items and reparable secondary items. The Ordnance activity group manufactures, renovates, and demilitarizes materiel for all branches of DoD. The Information Services activity group provides development and operational sustainment of automated information services. Army working capital activities are committed to acquiring goods and providing services to sustain training and readiness at the lowest possible cost. In Fiscal Year 2000 our customer rates are relatively stable with a 1.6 percent increase from the previous year in supply management rates; a 5.9 percent increase in Depot Maintenance rates; a 5.7 percent decrease in Ordnance rates; and a 19.2 percent increase in Information Services. In general, the AWCF budget displays a continued downward trend in revenues. Costs also continue to decline, but at a slower rate than revenues due, in some part, to the initial investments required to reap the efficiencies outlined in the Army FY 98-03 Program Objective Memorandum and Army FY 00-05 Quadrennial Defense Review initiatives. Increases in customer funding for near term readiness will help ensure the Army will sustain sufficient working capital in FY 00 without advance billing revenue. Additional budgeted increases will improve the sustainability of Army pre-positioned equipment around the world. -more- ARMY BUDGET 16/16/16/16 VII. ARMY ENVIRONMENTAL PROGRAM Army policy mandates that all current operations comply with federal, state, local and applicable host-nation environmental standards. The Army’s commitment to this policy is reflected in the $1.08 billion included in the Army’s Fiscal Year 2000 budget request for environmental programs. The requested amount is distributed among various Operations and Maintenance appropriations ($523 million), Environmental Restoration, Army ($378 million), Base Realignment and Closure ($85 million), Research Development Testing and Evaluation, Army ($28 million) and other appropriations ($61 million). The funds will pay for environmental compliance, conservation of natural and cultural resources, and pollution prevention on Army installations worldwide. The budget also provides support to correct violations, meet existing and new environmental standards and dispose of hazardous waste. VIII. SUMMARY The Fiscal Year 2000 budget reflects a balanced assessment of the Army’s needs and priorities. It seeks to preserve readiness, sustain modernization, integrate the force structure, and improve quality of life. It makes significant progress toward fully digitizing the Army. It reinforces the force structure as a "seamless" Total Army, preserving improvements in Active Component/Reserve Component integration. It seeks to curb recent adverse trends in recruiting and retention through pay and retirement reform, recruiting enhancements and base support improvements--all focusing on improving the quality of life for soldiers and their families. The Fiscal Year 2000 budget also reflects the Army’s continuing effort to seek efficiencies and savings through competition and reductions in obsolete infrastructure in accordance with the Quadrennial Defense Reviews charter. Once achieved, these savings are reinvested to improve readiness, modernization, and soldiers’ quality of life. The Army has worked hard to achieve a balance between readiness and modernization. This has been a substantial challenge in previous years. The funding increases in this budget have been largely targeted toward near-term readiness. Nevertheless, the Army's commitment to modernization remains steadfast, sustaining much of the gain following the Quadrennial Defense Reviews. The Army is committed to the balanced allocation of resources in accordance with warfighting priorities while allowing its commanders the flexibility, during execution and within legislative restrictions, to address specific operational and support needs. The Army is squarely focused on quality mission accomplishment that can only be sustained by achieving the best quality of life, the toughest, most realistic training, and the most capable equipment in the world. -END- For further, contact Lt. Col. Bill Wheelehan, Army Public Affairs, at (703) 4314/4739. Internet availability: This document is available on Army Link, a world Wide Web Server on the Internet at, http://www.dtic.mil