USMC Programs and Resources MCAA Brief LtGen Duane Thiessen Deputy Commandant, P&R
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This is just an average year. It is not as good as last year and better than next....
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Federal Budget Historical Trends In the past 40 years, mandatory spending has grown… 1965
Discretionary
M andatory
Interest
1995
Discretionary
M andatory
1985
1975
Discretio n ary
M an d ato ry
In terest
Discretio n ary
M an d ato ry
M andatory
Interest
2009
2005
Interest
Discretionary
In terest
Discretio n ary
M an d ato ry
In terest
…reducing discretionary spending to about 1/3 of outlays v6
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President’s Budget ~$3.6 Trillion in FY2009 Troubled Asset Relief Program Medicare 12%
Medicaid 7%
TARP 7%
Social Security 19% Non-Defense Discretionary 17%
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Other Mandatory 19%
DoD 19%
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DoD Budget $513B in FY2009*
Defense Agencies / Defense-Wide 17% $85.5B
Army 27% $139.2B
Air Force 28% $141.2B
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DoN 28% $147.4B
* Does not include supplemental appropriations UNCLASSIFIED
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DoN Budget as a Share of DoD Other USA 17%
USAF 28%
27%
DoN 28%
Navy 73%
Indirect 4%
Marine Corps BISOG 17% 6% • BISOG equals direct aviation procurement & flying hour program • Marine Corps + BISOG $ = 6% of DoD TOA 6 v6
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There is an optimistic, idealistic, euphoric vision where unicorns no longer poop in the streets....unfortunately, there is also reality.
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The Spending Trend is Not Sustainable 50%
Federal Revenue in 2008 17.1% of GDP
40%
30%
Stimulus Package 20%
Interest
Medica
All other spending (including other mandatory spending)
10%
Medicare Social Security
0% 1965
1971
1977
1983
1989
1995
2001
2007
2013
2019
2025
2031
2037
2043
2049
Source: Congressional Budget Office “The Long-Term Budget Outlook”, June 2009 v6
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Federal Spending T re n d s in F e d e ra l S p e n d in g (Percent of Federal Budget) 100% 90%
Percentage of the Federal Budget
80% 70% 60%
De f e n s e Dis c r e t io n a r y
Stimulus Package
No n - De f e n s e Dis c r e t io n a r y Ne t In t e r e s t
50% Projection
40% 30% 20%
M an d ato r y
10%
19 69 19 71 19 73 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19
0%
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Defense Funding Trends De fense Budge t Trends
800 Bas e
(T Y $ in B)
OCO
700
667 602
600 506
TY $ in B
500 400 319
300
654
17
200
444
443
69
66
103
187
537
Projection
664
625
639
592
601
611
50
50
50
50
50
141
130
542
551
561
575
589
513
534
2009
2010
2011
2012
2013
2014
2015
164 116
342
14
302
328
2001
2002
375
377
403
421
438
2003
2004
2005
2006
2007
480
100 0 2008
Fis cal Ye ar
FY09 does not include the DoD portion of the American Reinvestment & Recovery Act ($7B)
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Federal Surplus/Deficit Federal Surplus/Deficit 19 69 19 71 19 73 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19
(Percentage of GDP)
3%
OM B CBO Actual
2% 1%
Projections
-1% -2% -3% -4% -5% -6% -7% -8%
(TY $ in B)
$200 $0
-9%
-$200
-$600 -$800 -$1,000
-12%
-$1,200
-13%
-$1,600
TY $ in B
-$1,400
-$1,800
3 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19
19 8
19 8
1
-$2,000 19 79
-14%
40-year average (1968-2008): -2.4%
-$400
-10% -11%
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Federal Surplus/Deficit $400
TY $ in B
Surplus/Deficit as a % of GDP
0%
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Conventional wisdom always makes straight-line projections and they are always wrong. ~ Charles Krauthammer
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Strategic Landscape
The defining principle of the Pentagon’s new National Defense Strategy is balance. The United States cannot....eliminate national security risks through higher defense budgets, to do everything....buy everything. The Department of Defense must set priorities and consider inescapable tradeoffs and opportunity costs.... ~ Sec’y Gates, Foreign Affairs, Jan / Feb 2009
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Fiscal Landscape The Secretary’s vision is clear. The “writing is on the wall”. Fiscal Challenges. Hard choices have to be identified; tough decisions will be made. Grand visions underwritten by blank checks are not sustainable. Top lines will be more pressurized. The Marine Corps will make the tough decisions that will result in a lean, agile and adaptable fighting force that is expeditionary and better able to address ever-evolving hybrid threats in complex environments. v6
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CMC Guidance -MC Vision and Strategy 2025
• “..future operational environments will place a premium on agile expeditionary forces, able to act with unprecedented speed and versatility in austere conditions against a wide range of adversaries.” • “We must be a two fisted fighter – able to destroy enemy formations with our scalable air-ground-logistics teams in major contingencies, but equally able to employ our hard earned irregular warfare skills honed over decades of conflict.” • “..we must be prepared to move with speed, live hard, and accomplish any mission.”
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CMC Priorities Achieve victory in OIF / OEF Right-size the Marine Corps Resetting for today while modernizing for tomorrow Improve quality of life for Marines and families v6
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