SHARE
TRANSCRIPT
| TIME | SPEAKER | TEXT |
|---|---|---|
| 00:00:01 |
|
NOW A DISCUSSION ON THE DEFENSE DEPARTMENT BUDGET FOR THE NEXT FISCAL YEAR. IT IS HOSTED BY THE CENTER... |
| 00:00:13 |
|
GOOD MORNING TO I WANT TO WELCOME EVERYBODY TO THE CENTER FOR STRATEGIC AND BUDGETARY ASSESSMENTS.... |
| 00:02:36 |
|
GOOD MORNING. I AM TAUGHT HARRISON. I WOULD LIKE TO START BY GOING THROUGH THE BRIEFING WE HAVE PREPARED... |
| 00:09:58 |
|
IF YOU LOOK AT THE FUNDING CURRENTLY IN AFGHANISTAN AND IRAQ, EACH OF THOSE OPERATIONS ON THEIR OWN... |
| 00:10:46 |
|
SO MILITARY PERSONNEL FUNDING, $136 BILLION IS INCLUDED IN THIS BUDGET. THAT'S UP SIGNIFICANTLY FROM... |
| 00:23:32 |
|
MARGERY WITH INSIDE THE ARMY. YOU TALKED A LITTLE BIT ABOUT THE PROJECTIONS FOR FUTURE BUDGETS MAINTAINING... |
| 00:23:43 |
|
I THINK IT'S GOING TO HAVE TO BE. YOU KNOW, GIVEN THE SITUATION IN THE OVERALL FEDERAL BUG, THERE'S... |
| 00:24:27 |
|
ARE YOU DIFFERENTIATING BETWEEN THE BASE AND THE SUPPLEMENTAL, DO YOU THINK THAT THAT'S GOING TO GROW?... |
| 00:24:31 |
|
SO THE WAR FUNDING, LOOKING AT THAT, I THINK THERE'S PROBABLY NO -- NO CHOICE BUT TO GROW THAT. IT'S... |
| 00:25:15 |
|
THANK YOU. |
| 00:25:18 |
|
JIM WOLFE, REUTERS. WHICH PROGRAMS DO YOU EXPECT TO BE THE BILL PAYERS? |
| 00:25:23 |
|
IN TERMS OF ACQUISITION PROGRAMS? |
| 00:25:24 |
|
YEAH, UH-HUH. |
| 00:25:25 |
|
WELL, YOU KNOW, WITHOUT NAMING ANY PROGRAMS IN PARTICULAR BECAUSE I WOULDN'T WANT TO HAZARD A GUESS... |
| 00:26:21 |
|
CAN YOU GIVE AN EXAMPLE OR TWO OF PROGRAMS THAT YOU THINK ARE IN THE MIDDLE OF THE SPECTRUM? |
| 00:26:26 |
|
ONE EXAMPLE WOULD BE LIKE THE EXPEDITIONARY FIGHTING VEHICLE, THE MARINE CORPS'S VEHICLE. SO THAT'S... |
| 00:27:16 |
|
SECRETARY GATES HAS BUSTED UP FUTURE COMBAT SYSTEMS AND IS TAKING A NEW LOOK AT THE GROUND VEHICLE... |
| 00:27:35 |
|
WELL, ALL INDICATIONS ARE RIGHT NOW THAT THEY INTEND TO KEEP THAT MONEY SET ASIDE THAT WAS GOING FOR... |
| 00:28:37 |
|
EMILY ROSS. SOME LAWMAKERS HAVE SAID THAT THERE MAY NEED ANOTHER SUPPLEMENTAL WAR FUNDING BILL IN... |
| 00:28:58 |
|
IT'S REALLY TOO EARLY TO SAY WHETHER OR NOT $130 BILLION WILL BE ENOUGH TO COVER THE ENTIRE YEAR.... |
| 00:30:40 |
|
THE ARMY IS PLANNING A TEMPORARY TROOP INCREASE OF 22,000 TROOPS IN THREE YEARS AND GATES HAS SAID... |
| 00:31:02 |
|
WELL, YOU KNOW, IT'S A $538 BILLION BASE BUDGET SO THERE'S A LOT OF PLACES TO LOOK FOR A BILLION DOLLARS.... |
| 00:31:46 |
|
SO YOU HAVEN'T HEARD ANY -- |
| 00:31:47 |
|
I HAVEN'T HEARD ANY SPECIFICS ABOUT WHERE THEY'RE GOING TO TAKE THAT MONEY FROM. [INAUDIBLE] |
| 00:31:59 |
|
WE HEAR ABOUT POTENTIALLY PROGRAMS BUT THINGS LIKE THE LONG-RANGE BOMBERS AND THINGS THAT AREN'T YET... |
| 00:32:08 |
|
WELL, YOU CAN ALWAYS MAKE ROOM. IT'S A MATTER OF REBALANCING BETWEEN YOUR ACQUISITION PROGRAMS. ... |
| 00:33:07 |
|
MARK, GIVEN THE CONSTRAINTS IN THE OVERALL BUDGET, HOW MUCH DO YOU EXPECT THERE TO BE RESTRICTIONS... |
| 00:33:16 |
|
I -- I HAVEN'T SEEN ANYTHING IN PARTICULAR THAT THEY'RE TALKING ABOUT RESTRICTING CLASSIFIED FUNDING... |
| 00:34:06 |
|
SO YOU THINK POTENTIALLY THE CLASSIFIED BUDGET WILL GROW AT THE SAME RATE? |
| 00:34:11 |
|
I THINK IT WILL PROBABLY KEEP AT AROUND THE SAME RATE, THE SAME PROPORTION OF ACQUISITION FUNDING... |
| 00:34:58 |
|
YOU MENTIONED THE HEALTH CARE COSTS CROWDING OUT OTHER AREAS. WOULD YOU SAY THAT HEALTH CARE IS THE... |
| 00:35:09 |
|
I DON'T KNOW IF IT'S NECESSARILY THE FASTEST GROWING ACCOUNT. IT'S DEFINITELY ONE OF THE FASTEST... |
| 00:36:22 |
|
I MEAN, YEAH, THE HEALTH CARE PART OF THE DEFENSE BUDGET IS NO DIFFERENT THAN THE REST OF THE BUDGET.... |
| 00:36:31 |
|
TOM BITTER FROM -- INAUDIBLE] HAS D.O.D. ADEQUATELY BUDGETED FOR THE RISING COSTS -- YOU EXPECTED... |
| 00:36:51 |
|
WELL, BECAUSE THEY DIDN'T RELEASE A DETAILED FUTURE YEARS DEFENSE PLAN, YOU CAN'T REALLY SEE HOW MUCH... |
| 00:37:32 |
|
YOU'VE GOT ESSENTIALLY A FLAT BUDGET OVER TIME. YOU'VE GOT GROWING HEALTH CARE COSTS. YOU'RE PROBABLY... |
| 00:37:54 |
|
WHAT WE HAVE SEEN IS, IF YOU LOOK AT THE R & D FUNDING, AND THAT'S A GOOD INDICATOR OF, YOU KNOW,... |
| 00:38:51 |
|
A FOLLOW-UP TO THAT AND A LITTLE BIT TO THE QUESTION EARLIER ON AVIATION EQUIPMENT. DO YOU SEE THAT... |
| 00:39:19 |
|
I THINK WE ARE SEEING A SHIFT, ESPECIALLY IN COMMENTS BY SECRETARY GATES WHEN HE WAS CUTTING A LOT... |
| 00:40:28 |
|
TWO QUESTIONS. ONE, JUST ON THE HISTORICAL. YOU'RE SAYING IT'S THE HIGHEST NOMINAL INFLATION ADJUSTED... |
| 00:40:35 |
|
YES. |
| 00:40:37 |
|
AND HOW DOES THAT COMPARE WITH G.D.P. AS A PERCENTAGE? AND ALSO, TO WHAT EXTENT DO -- HOW BIG IS THAT... |
| 00:40:50 |
|
THE FIRST PART OF YOUR QUESTION, THE BASE DEFENSE BUDGET IS THE HIGHEST LEVEL ADJUSTED FOR INFLATION... |
| 00:42:28 |
|
I HAD A BASIC QUESTION ABOUT YOUR RATE OF GROWTH THAT YOU HAVE IN HERE. YOU SAY 3% TO 4% IN INFLATION... |
| 00:42:48 |
|
WE DO USE SLIGHTLY DIFFERENT DEFLATERS. I'M USING A G.D.P. DEFLATER. THE DEFENSE DEPARTMENT COMPUTES... |
| 00:43:18 |
|
I'VE GOT TO GO BACK BECAUSE I'M PRETTY SURE THEY SAID 4% AND THEN 2% INFLATION ADJUSTED. THE OTHER... |
| 00:43:39 |
|
NO, THAT'S LOOKING AT -- WELL, I'D HAVE TO LOOK AT THE -- I BELIEVE THAT'S JUST LOOKING AT THE BASE... |
| 00:43:47 |
|
THE 43% FIGURE WOULD HAVE BEEN, THE LOW NUMBER? |
| 00:43:49 |
|
I'M NOT FAMILIAR WITH THAT. |
| 00:43:52 |
|
BECAUSE THAT WAS WHAT WE'VE USED A LOT IN THE PAST. THIS MUST MEAN SUPPLEMENTALS BUT IT'S A LITTLE... |
| 00:43:58 |
|
WE CAN LOOK AT THAT. |
| 00:44:03 |
|
OKAY. |
| 00:44:05 |
|
ANY OTHER QUESTIONS? |
| 00:44:07 |
|
SO YOU HAVE THE BASELINE BUDGET AND THEN A WAR -- CALL IT WHAT YOU WILL -- SPENDING REQUEST, TWO SEPARATE... |
| 00:44:20 |
|
IT LOOKS LIKE WHAT THE ADMINISTRATION PLANS TO DO, YOU KNOW, BUDGET-WISE IS INCLUDE THE D.O.D. BUDGET... |
| 00:44:57 |
|
OKAY. |
| 00:45:03 |
|
MARK, AIR, "AIR FORCE MAGAZINE." TO WHAT EXTENT HAVE SOME OF THE FUTURE YEAR HIGH-DOLLAR PROCUREMENT... |
| 00:45:19 |
|
MIGRATING PROGRAMS IN THE CLASSIFIED BUDGET? I HAVE NOT SEEN ANY INDICATION OF THAT HAPPENING. |
| 00:45:26 |
|
THE NEXT-GENERATION BOMBER, FOR EXAMPLE. |
| 00:45:28 |
|
WELL, YOU KNOW, THIS CAME OUT PUBLICLY AT A CONGRESSIONAL HEARING THAT IN THE AIR FORCE'S UNFUNDED... |
| 00:46:16 |
|
FOR YEARS, MISSILE DEFENSE SPENDING HAS BEEN THE SINGLE LARGEST D.O.D. WEAPONS DEVELOPMENT OUTLAY.... |
| 00:46:27 |
|
WHAT WE'VE SEEN THIS YEAR IN THE MISSILE DEFENSE BUDGET IS THE SECRETARY HAS TAKEN A DIFFERENT TACT.... |
| 00:47:50 |
|
YOU MEAN THE B.M. -- THE G.M.D.? |
| 00:47:52 |
|
RIGHT, GROUND-BASED MID-COURSE DEFENSE. |
| 00:47:56 |
|
REGARDING PROCUREMENT AND O & M, MANY SEE A FUTURE CRUNCH COMING IN REGARDS TO THE FACT THAT WE'RE... |
| 00:48:22 |
|
WELL, YOU KNOW, IN TERMS OF RESET AND RECAPITALIZATION COSTS, YOU KNOW, IT'S BEEN FUNDED IN THE WAR... |
| 00:50:14 |
|
THAT ISSUE SET ASIDE, EVEN WITH THE REDEFINITION OF MODERNIZATION OR WHAT ACCOUNTS FOR MODERNIZATION,... |
| 00:50:30 |
|
THERE'S DEFINITELY CONCERNS WITH THE RATE AT WHICH WE BUY NEW EQUIPMENT. BECAUSE, YOU KNOW, IT'S A... |
| 00:52:17 |
|
YOU MENTIONED THIS WISH-LIST. YOU SEEMED TO HINT THAT BECAUSE THEY'D BEEN REVIEWED BY THE SECRETARY... |
| 00:52:34 |
|
WELL, YOU KNOW, IT'S A LITTLE TOO EARLY TO SAY FOR THIS YEAR. YOU KNOW, THERE ARE NEW DISCLOSURE REQUIREMENTS.... |
| 00:53:47 |
|
THE SECRETARY JUST ADDED 2 22,000 MORE NEW SOLDIERS. HOW -- HOW BIG IS TOO BIG FOR THE FORCE IN TERMS... |
| 00:53:59 |
|
WELL, YOU KNOW, WHENEVER WE ADD MORE TROOPS TO THE SIZE OF THE FORCE, THERE ARE LONG-TERM BUDGET IMPLICATIONS... |
| 00:55:55 |
|
KIND OF THE SAME ISSUE, LET ME ASK IT IN A DIFFERENT WAY. IS IT FAIR OR ACCURATE TO SAY THAT IT'S... |
| 00:56:18 |
|
YOU KNOW, I WOULDN'T WANT TO HAZARD A GUESS, YOU KNOW, WHICH IS MORE EXPENSIVE. I MEAN, THERE'S DEFINITELY... |
| 00:57:15 |
|
OVER TIME, AS YOU LOOK AT THIS RELATIVELY FLAT BUDGET, WHAT ARE -- I KNOW YOU'RE A BUDGET GUY, BUT... |
| 00:57:27 |
|
HMM, YOU KNOW, ONE OF THE THINGS THAT WE'RE SEEING COMING OUT OF THE Q.D.R., AND MAYBE JIM COULD TALK... |
| 00:58:09 |
|
YEAH, I THINK WHEN YOU LOOK AT BOTH THE -- THE PRESSURE ON THE TOP LINE AND THE D.O.D. BUDGET AS WELL... |
| 00:59:35 |
|
WHAT DOES THAT MEAN? THE DAYS OF NIPPING AND TUCKING ARE COMING RAPIDLY TO AN END AND WHAT LIES AHEAD?... |
| 00:59:42 |
|
I THINK WE'RE GOING TO HAVE TO THINK ABOUT POSITION TRADES. IT'S NO LONGER JUST A QUESTION OF REALLY... |
| 01:00:27 |
|
ERA OF PERSISTENT CONFLICT? OUTSIDE OF IRAQ AND AFGHANISTAN, NO ONE CAN -- CAN LIST FOR ME WHERE WE... |
| 01:00:39 |
|
WELL, SURE. I MEAN, I THINK WHAT YOU SEE TODAY IS YOU HAVE A NUMBER OF STATES IN THE WORLD THAT ARE... |
| 01:02:22 |
|
A LOT OF THE IMPETUS ON U.A.V.'S IN THE LAST YEAR -- TWO YEARS HAS BEEN BECAUSE OF GATES' PERSONAL... |
| 01:02:42 |
|
I THINK U.A.V.'S ARE DEFINITELY AROUND TO STAY. YOU KNOW, THE MILITARY HAS SEEN, YOU KNOW, QUITE A... |
| 01:04:06 |
|
YOUR GROUP HAS A SPECIAL -- THE NAVY OF DRONES, A BROAD AREA OF MARITIME SYSTEMS THEY FELT WAS IN... |
| 01:04:26 |
|
YEAH, I HAVEN'T SEEN ANYTHING IN PARTICULAR ON THAT RECENTLY. I DON'T I DON'T KNOW IF YOU'RE REFERRING... |
| 01:04:43 |
|
AND I BELIEVE SOME OF THE ADVANTAGES OF THAT IS IT GIVES YOU A LOT LONGER RANGE OF STRIKE OFF A CARRIER.... |
| 01:05:07 |
|
ON THE JOINT STRIKE FIGHTER, WHAT DO YOU PREDICT FOR ITS |
| 01:05:11 |
|
[LAUGHTER] WELL, YOU KNOW, WE'VE SEEN A LOT COME OUT IN RECENT DAYS. YOU KNOW, DEFINITELY WITH THE... |
| 01:07:05 |
|
THANKS, TODD. |
| 01:07:08 |
|
THANKS, EVERYONE, FOR COMING. |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
