analysis of the fy 2015 defense budget todd harrison

Analysis of theFY 2015 Defense Budget

Todd Harrison

Defense-Related Funding in FY 2015 RequestCategory FY 2015 RequestDoD Base (discretionary) $495.6BDoD Base (mandatory) $6.2BDoD Overseas Contingency Operations $58.6BDoD Subtotal (051) $560.4BAtomic Energy (053) $19.3BDefense-Related Activities (054) $8.3BNational Defense Budget Function Total $588.0BDepartment of Veterans Affairs (discretionary) $65.3BDepartment of Veterans Affairs (mandatory) $95.5BOther Agencies $0.4BVeterans Budget Function Total $161.2BTreasury Pmt. to the Military Retirement Trust $73.2BTreasury Pmt. to the Retiree Health Care Fund $3.4BTax Exemptions for Military Personnel $13.2BTax Exemptions for Veterans’ Benefits $7.1BOther Total $96.9B

Total Defense-Related $846.1B

Base DoD Budget vs. BCA Caps

3

FYDP as a Lagging Indicator

4

Base DoD Budget by Service

5

Base DoD Budget by Title

6

Military Compensation Growth

7

O&M Cost Growth

8

Acquisition Funding

9

Top 20 Acquisition Programs

10

MILCON and Family Housing

11

War-Related Funding

12

Strategy-Resource Mismatch

• DoD could need some $200-300B more than BCA caps over the FYDP to execute the defense program in the 2014 QDR– FY 2015 budget already $116B over the BCA caps– Would need additional ~$20B for higher force levels in QDR– May need $50-100B for OCO-to-base migration– Other assumptions in the request that may not come true:

• Savings from military compensation reform• “Efficiency” savings• Acquisition cost growth• O&M cost growth

13

Questions?

Historical Perspective

15

Military Personnel-Related

16

Total: $183B

RDT&E by Activity

17

Procurement by System Type

18

Veterans’ Benefits and Services

19