The United States Navy

FISCAL RESOURCES

Department of Defense Total Obligational Authority (TOA), the total fiscal resources available to the Department of Defense, has been declining since the height of the Cold War, and only now looks to be leveling off. Between FY 1985, the last year in which Defense TOA showed a real increase in spending power compared to the previous year, and FY 1999 there has been a 40% cumulative real decrease in constant budget dollars. However, the President’s FY 2000-2005 FYDP requests additional funding to help meet our most critical needs. The trends since FY 1993 are shown in Figure 10 [use "back" key to return here]:

The resources allocated to Defense Department spending as a percentage of Gross Domestic Product (GDP) have also decreased significantly. Defense spending as a share of GDP has declined from 6% in 1986 to 3% in 1999, its lowest point in 40 years. Figure 11 [use "back" key to return here] shows the corresponding downward trend in Navy-Marine Corps TOA since FY 1986. In spite of declining resources, however, the Naval Services continue to provide the nation with its only truly independent, highly flexible, forward military presence and the only credible force that will enable the other services to enter future theaters of crisis and conflict.

Consequently, the Navy has worked to maintain its multi-mission capabilities and forward-presence posture while reducing the size of the Fleet. This has required significant reductions in areas of infrastructure and force structure considered less relevant to the service’s new missions and its transformation to the Navy of the 21st century. Figure 12 [use "back" key to return here] shows the cuts in infrastructure and the funds saved during the last ten years, while Figure 13 [use "back" key to return here] shows force structure projected through FY 2005.

The FY 2000 budget request maintains operating tempo (OPTEMPO) at approximately the same level as previous years. Much of the available OPTEMPO funding comes from the inactivation of additional ships and submarines to achieve long-term savings. OPTEMPO is measured in terms of ship steaming days and aircraft flying hours, both of which are critical readiness factors. The OPTEMPO funded in the current budget, as shown in Figure 14 [use "back" key to return here], reflects additional requirements in areas such as the Arabian Gulf in response to Iraqi intransigence, and is considered the minimum necessary to meet forward-presence requirements and commitments directed by the commanders-in-chief around the globe. Should force structure continue to be reduced, the Navy’s future OPTEMPO, however, is likely to exceed these targets, potentially putting greater stress on our equipment and people. Thus, today’s force structure and OPTEMPO are important factors of future operational readiness.

NAVY-MARINE CORPS APPROPRIATIONS

The allocation of requested FY 2000 Navy resources to appropriations is shown in Figure 15 [use "back" key to return here]. These appropriations are grouped logically to simplify the display (e.g., personnel, procurement, operations). Figure 16 [use "back" key to return here] shows the trend in Navy procurement, in constant dollars, during the past several years. (The Appendix provides information on Navy and Marine Corps appropriation titles, with a brief synopsis of what each entails.)

VISION. . .PRESENCE. . .POWER

The Navy-Marine Corps Team plays a major role in safeguarding the United States, and its citizens, interests, and friends around the world. The Naval Services epitomize the essence of naval expeditionary warfare: able to support naval, Joint, and combined operations across the spectrum of U.S. involvement in the world, maintaining routine peacetime presence in important world regions, responding to cries for humanitarian assistance, deterring conflict and the use of weapons of mass destruction, committing forces to resolve crises, and fighting in major wars. America’s Sailors and Marines will continue to be highly capable, skilled, and inspired men and women for whom courage, commitment, and honor are principles held dear. The Navy-Marine Corps Team must be maintained at the highest level of readiness, supported by a technological and industrial base that can provide the engine for transforming the Naval Services to meet the diverse and dangerous challenges of the 21st century. The Navy will be ready and capable to answer the nation’s call, and committed to the defense of liberty, democracy, and economic prosperity — anywhere, anytime!

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