Army Budget Chief Sees Adjustments in Personnel and Modernization Accounts 

6/11/2009 

            With the intense concentration on preparing the Fiscal Year 2010 Army spending plan in the wake of the cancellation of the manned vehicle portion of the Future Combat Systems, the service’s senior budget official predicted that military personnel and modernization accounts “all will have to be adjusted” in the coming year.

            Lt. Gen. Edgar Stanton, speaking June 9 at the Association of the United States Army’s Institute of Land Warfare breakfast in suburban Washington, said in answer to a question, [expect] “some tension between personnel accounts and investment accounts” as future budgets are developed.

            The will be particularly true for FY 2011, he said, because the Quadrennial Defense Review will be completed by then and the Army met its projected end-strength goals for all components two years ahead of schedule.

            Also in the budget mix for that fiscal year will be the completion of the Base Realignment and Closure process.

            Looking at the Army’s $142 billion budget request, Stanton said the military personnel account of $58 billion is now fully funded in the base budget request. To cover the increase in end strength the count grew by $6 billion.

            Operations and maintenance accounts of $40 billion and procurement of $21 billion were either down a little or were flat from last year’s request.

            Research, development, technology and evaluation was $10.4 billion.  “This is down reflecting the manned ground vehicle” cancellation in the FCS program.

He said he expects the Army to meet its goal of presenting the Defense Department its future heavy vehicle needs concept by Labor Day and that money for the program will be in the FY 2011 budget.

            Stanton said he was “rightfully optimistic we will get the $83.1 billion” supplement request in time to avoid reprogramming funds or terminating programs.  

Almost $53 billion will be spent on operations and maintenance.

            Much of the Army resetting of equipment spending [between $11 billion and $12 billion] remains in the supplemental.

            Stanton reminded the more than 200 attendees that the Army budget was being created in a time of financial crisis, the collapse of the housing market, rising unemployment and deepening recession when a new administration was taking office.

In answer to a question, Stanton said that he not foresee dramatic increases in TRICARE co-payments and fees while military operations are continuing in Afghanistan and Iraq.

            KBR, an AUSA Sustaining Member, sponsored the breakfast.