DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 1983 THURSDAY, MAY 13, 1982 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 10:09 a.m., in room 1318, Everett McKinley Dirksen Senate Office Building, Hon. Ted Stevens (chairman) presiding. Present: Senators Stevens, Schmitt, and Andrews. DEPARTMENT OF DEFENSE DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR RESERVE AFFAIRS STATEMENT OF EDWARD J. PHILBIN, DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR RESERVE AFFAIRS GUARD AND RESERVE PROGRAMS HEARING PROCEDURE Senator STEVENS. Good morning, gentlemen. In opening I will have to apologize to you for the problems that we have. As you know, the Department of Defense bill is on the floor. We are going to have repeated votes throughout the morning. In addition to that, we have the President of Brazil who is here and have requested that we go down in small groups to meet the President, so we will have a revolving hearing this morning. But I am assured that some of my colleagues will be here after the vote to assist in conducting the hearing. BUDGET REQUEST We are here to hear the testimony of the Guard and Reserve Forces appropriation request for fiscal year 1983. The total 1983 budget estimate for the Guard and Reserve military personnel is $4.6 billion. That is 33 percent up over last year. The total Guard and Reserve operation and maintenance budget is $5 billion, 8 percent over last year. We are pleased to have you all with us today. We have your statements, and they will be incorporated into the record. I see you all are identified for the purpose of the record, so we will proceed as you wish. Dr. Philbin, do you wish to proceed first? 92-385 0-82--23 Dr. PHILBIN. Yes, sir, we have an opening statement. CAPABILITIES OF GUARD AND RESERVE Mr. Chairman, members of the subcommittee, I appreciate this opportunity to appear before you and present information on the seven Reserve components of the U.S. Armed Forces. As I am sure you are well aware, the problems that beset the total force are problems for the regulars as well as for the Guard and the Reserve. The need for personnel and equipment has been and will continue to be a significant factor in our ability to accomplish our mission. We are also confronted with the specter of having large quantities of the equipment in our hands now become obsolete within the next few years. In addition to these materiel shortages, to make the most of our people and equipment, we require more and better training opportunities if we are to have a credible deterrent to offset the aggressive policies and behavior of our potential adversaries. These problems cannot be quickly resolved and must be addressed at both the Defense Department and the congressional level. In the interest of accuracy I must quickly add that the capabilities of today's Guard and Reserve are better than they have been since the end of World War II, and thanks to the efforts of Congress and the vitality and dedication of the leadership and members of the Reserve components themselves, we become stronger and more capable every day. AREAS OF PROGRESS I would like to highlight briefly some areas of significant prog ress. The strength of the Selected Reserve is vastly improved over what it had been at the close of the last decade. The caliber of our first-term enlistees is improving, and our ability to attract highly skilled prior service members is at an all-time high. Retention, while not matching expectations as yet, is nevertheless improving. Our pretrained individual manpower situation improved considerably in fiscal year 1981, and I feel confident that if the incentive programs we are proposing, coupled with a lengthened military service obligation, are approved, we will see a significant reduction in the manpower shortfalls in that category. EQUIPMENT PROBLEMS The equipment problems inherited by this administration are of such magnitude that even in a fiscally unconstrained environment it would take a considerable period of time to correct them. But there are positive signs of progress. Congress has taken an important step by requiring an annual report on the status of Guard and Reserve equipment. The audit process made necessary by the report-writing process directly supports the DOD policy that the units destined to fight first, whether active, Guard or Reserve, are to be properly equipped first. Unitary buys of new weapon systems that will satisfy the total needs of both the Active and Reserve Forces are the best solutions to problems of equipment incompatibility. Multiyear procurement contracts offer another means of alleviating equipment shortfalls simply by getting more for the dollar spent. This technique enables commitment early in the acquisition cycle to purchasing a sufficient quantity to satisfy the requirements of the total force as opposed to a series of incremental contracts over time. Although requiring substantially more funding at the beginning of an acquisition cycle, these costs are more than compensated by the economies of scale realized in unitary buy production and stimulated competitive bidding. Above all, increased participation by the leadership of the Reserve components themselves in the entire process of procurement and distribution at all levels of the decisionmaking structure is the common denominator of each measure taken to address the problem. EQUIPMENT NEEDS Statements of the Guard and Reserve witnesses will address some specific improvements. Yet, in spite of these bright spots, there remains a critical need for the addition of more and better equipment for each of our Reserve components. Progress is being made, and I believe that with the assistance of this committee we shall continue to reduce the level of Guard and Reserve equipment deficiency. In conclusion, Mr. Chairman, I wish to express my appreciation for the generous support of the Appropriations Committee, this subcommittee, and that of the Congress in general. Individuals in units of the Guard and Reserve are the repository of skills that this country desperately needs and that would require an incalculable price in time and resources to replace. Recognizing the vital contribution they make to our national security, I believe that the fiscal and management attention required to solve their problems can and should be provided by the military service, the Congress, and ultimately, the American people. Historically we have called upon our citizens to defend our national interest in time of peril. It is both our birthright and part of our economic philosophy. The cost of a full-time Armed Force equal to today's threat would be devastating to economic growth in any other sector. I believe that a strong Guard and Reserve as an adjunct to our Regular Forces represent the best means of maintaining a believable deterrence and an effective combat capability should we be required to employ them in battle. I ask your continued support toward achieving that end. I am now prepared to answer to the best of my ability any questions which you may have, sir. Senator STEVENS. Thank you, very much. [The prepared statement of Dr. Edward J. Philbin follows:] PREPARED STATEMENT OF EDWARD J. PHILBIN DEPUTY ASSISTANT SECRETARY OF DEFENSE (RESERVE AFFAIRS) Mr. Chairman, Members of the Subcommittee; I am grateful for this opportunity to provide you with information on the status of the seven Reserve Components of the United States which include the Army National Guard, the Air National Guard and the Coast Guard Reserve. Since my appointment to this post and confirmation last June, I have had numerous opportunities to speak to representatives of government, the military services and associations, private industry, students and many others in our country about the role of the Guard and Reserve forces in the defense of this nation. In speaking to you today my message is the same one I have tried to communicate to them i.e., strong, well-equipped, combat ready forces of all of the Reserve Components are essential to our success if we are forced to engage in any form of serious sustained combat now and for the foreseeable future. To produce a strong Guard and Reserve we have faced and will continue to face many problems in attracting sufficient numbers of people of the caliber we need, training and equipping them properly and ensuring that they remain available for service as long as their skills are employable. A central ingredient in the success of this effort is public awareness of both the need for and the real military capabilities of our Guard and Reserve units and personnel. The high level of professionalism of the individuals and units of our Guard and Reserve and where they stand in the scheme of things with regard to national defense has not been sufficiently publicized to the citizens of this country. Public awareness is always vitalized most quickly by the business and governmental leadership of the country. Consequently, I believe that keeping the Congress informed of both the capabilities and the needs of the Guard and Reserve is one of my principal functions if I am to expect you to authorize the expediture of public monies in support of these programs. The Ready Reserve of the United States constitutes an armed force of over 1.3 million men and women who possess not only a high sense of duty and obligation but the self-confidence born of demonstrated ability. Thirty-nine percent of the Total Force of three million four hundred thousand military personnel are members of Guard or Reserve units, Guard/Reserve trainees, or part of the Pretrained Individual Manpower resources of the Reserve Components. Within funding constraints, units and individuals of the Reserve Components train and work side-by-side with active duty personnel on land, sea and in the air, often at the risk of and sometimes at the cost of their lives. They take part in overseas and CONUS based exercises throughout the year to maintain combat mission readiness and the capability to counter the current threat. What we provide is done at bargain rates. Although various methods of calculation result in somewhat different numbers, approximately five percent of the FY 82 total obligation authority for DOD is designated for Guard and Reserve forces and the significant military capability which they provide. At this point I would like to present some detail on the overall FY 1983 budget request for Guard and Reserve personnel, the strength of the Selected Reserve and the status of our Pretrained Individual Manpower. Guard and Reserve Personnel Funding For FY 1983 the Department is requesting $4.6 billion for appropriations to fund pay and allowances. This represents an increase of $1.1 billion over the revised FY 1982 request of $3.5 billion. After adjustments for projected FY 1983 pay increases and the transfer of the Navy Training and Administration of Reserve (TAR) program to reserve funding, this amounts to a program increase of $.6 billion or 16%. These additional funds will provide for the improved strength programs discussed below. Table 1 The FY 1983 authorization requests the Selected Reserve End FY Strength shown in Table 1. There are two manpower accounting changes in the authorization request. In FY 1982 10,615 additional Individual Mobilization Augmentees are included in Selected Reserve strength. This change was reflected in the FY 1982 Authorization Act. Beginning in FY 1983 full-time personnel in the Navy Training and Administration of Reserves (TAR) program are included in Selected Reserve strength. A total of 11,828 TAR personnel are in the FY 1983 end strength of the Naval Reserve. The TAR personnel were previously included in the active manpower authorization. As in FY 1982, the FY 1983 Budget will provide significant increases in the strengths of the Army National Guard and Army Reserve. The Air National Guard and Air Force Reserve are programmed to increase their strengths to all-time highs. The Marine Corps Reserve also is programmed to increase strength significantly. Our goal is to achieve levels that will assure that our Selected Reserve Units are manned and able to fight effectively with a minimum delay following activation. Pretrained Individual Manpower The shortage of pretrained manpower needed in the event of mobilization has been of continuing concern to the Department of |