Resourcing the Army A Campaign Quality Army with Joint and Expeditionary Capabilities Our Army at War… Relevant and Ready MG Edgar E. Stanton III Director of Army Budget Assistant Secretary of the Army (Financial Management & Comptroller) 9 March 2006

Agenda FY 2005 Overview Resourcing in FY 2006 Resourcing in FY 2007

FY 05 Overview FY05 – Where We Started …… Base Title IX FY06 Supp Total $100B + $16B + $44B = $160B     FY05 – What We Did Kick Started Modularity and GWOT procurement (11 BCTs, $13B) Expanded Depot Capacity and Output ($8B) Realigned funds to support recruiting / retention ($800M) Grew incentives ($95M budgeted - - $400M now) Addressed Operational Needs Statements ($4.4B) Improved Soldier Barracks (39K soldiers / 29 installations) Katrina Support

FY 2006 Status ($B) FY06 – Where We Stand…… Pres Bud Title IX FY06 Supp Total Benchmark $100B + $30B + $34B = $164B Status $98.2B + $32.2 + $36.3B = $166.7B*      * Does not include Katrina supp funding $866.1M in Title IX plus Main Supp request of $269.7M

FY06 – Today ($B) Capitol Hill OMB OSD Work in Progress Where are we? Funding Letter Issued Supplemental Working on Hill Shaping Mid-year Review Capitol Hill OMB Supplemental: Supports deployed forces Supports AC overstrength Prepares next to deploy forces Transitions Army to Modular Forces Resets the Force Honors Executive Agency Commitments Way Ahead OSD

Within 60 Days of Mid Year Review 2 ASA (FM&C) For Official Use Only (FOUO)/Pre - Decisional PPBE Document Man, Train & Equip To Support The Army Campaign Plan TOA $167B Pre deployment/Existing Unit Equipment Procurement MILPERS Grade & Recruit O & M Depot Maint BOS OPTEMPO New Production Demand Supply ACP/MTOE changes Within 60 Days of Mid Year Review RDTE Recap Upgrade MILCON ONS What does It look like ?? $ 1B $1.2B $ .7B $ .6B $ 3B LTG Sinn Supp charts from the Young Murtha lunch

Army FY07 Budget Themes Win the Long War Sustain the All-Volunteer Force Accelerate the Future Force Modernization Strategy Accelerate Business Transformation and Process Improvements

Army Budget Authority

Military Personnel Summary Program Highlights Man The Force Funds the Active and Reserve Component End Strengths Reflects a 2.2% across-the-board pay raise with selective additional increases for certain warrant officers and mid-grade senior enlisted personnel Maintains zero out-of-pocket expenses for Housing Continues Residential Communities Initiative Budget Request ($B)

Operation and Maintenance Summary Program Highlights Budget Request ($B) Execution of the Combined Arms Training Strategy for air and ground OPTEMPO Army’s Baseline Depot Maintenance Program Army commitment to improve Base Support/Sustainment, Restoration, and Maintenance for soldiers and families Ongoing Kosovo Operations, but relies On Supplemental For Operations Iraqi Freedom and Enduring Freedom Implementation of efficiencies as element of Army Business Transformation Training soldiers, units, and leaders to succeed in the current operational environment Budget Request ($B)

Procurement Program Highlights Budget Request ($B) Budget Request ($B) Army Modular Force investments to shoot, move, and communicate in the new modular brigade Increased capability in deployability, sustainment, C4ISR, force protection, and precision strike Continues investment in new aircraft, as well as remanufactured aircraft Budget Request ($B) Budget Request ($B)

Research, Development, Test, and Evaluation Future Combat System Budget Request ($B)

Military Construction Improves Facilities Across the Army… Budget Request ($B) Barracks for 3d Brigade Combat Team 82d Airborne Division, Fort Bragg, NC

Fort Belvoir Family Housing (RCI) Army Family Housing Fort Belvoir Family Housing (RCI) Budget Request ($B)

Base Realignment and Closure 2005 13 Full Closures 4 Major Installations McPherson, Monroe, Monmouth, Gillem, 1 Minor Installation Charles Kelly Support Center 3 Chemical Depots Deseret, Newport, Umatilla 4 Ammunition Plants Kansas, LoneStar, Mississippi, Riverbank 1 Reserve Garrison Selfridge 53 Installations Realignments 50 Active Installations 3 Reserve Garrisons 8 Leased Facilities Closed FY07 BRAC 2005 budget is $3.608M, with $2,726M BRAC $ 882M BRAC 1IDand 1AD from Germany (IGPBS) Execute 76 MILCON projects in FY07 211 Guard Closures 175 Reserve Closures 125 New Armed Forces Reserve Centers

Army FY07 Budget Themes Win the Long War Sustain the All-Volunteer Force Accelerate the Future Force Modernization Strategy Accelerate Business Transformation and Process Improvements