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USMC Programs and Resources MCAA Brief LtGen Duane Thiessen Deputy Commandant, P&R

v6

UNCLASSIFIED

1

 This is just an average year. It is not as good as last year and better than next....

v6

UNCLASSIFIED

2

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

UNCLASSIFIED

3

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%

v6

UNCLASSIFIED

Other Mandatory 19%

DoD 19%

4

DoD Budget $513B in FY2009*

Defense Agencies / Defense-Wide 17% $85.5B

Army 27% $139.2B

Air Force 28% $141.2B

v6

DoN 28% $147.4B

* Does not include supplemental appropriations UNCLASSIFIED

5

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

UNCLASSIFIED

 There is an optimistic, idealistic, euphoric vision where unicorns no longer poop in the streets....unfortunately, there is also reality.

v6

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7

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

id

UNCLASSIFIED

8

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%

v6

Fis ca l Y e a r UNCLASSIFIED

9

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)

v6

UNCLASSIFIED

10

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%

v6

Federal Surplus/Deficit $400

TY $ in B

Surplus/Deficit as a % of GDP

0%

UNCLASSIFIED

11

 Conventional wisdom always makes straight-line projections and they are always wrong. ~ Charles Krauthammer

v6

UNCLASSIFIED

12

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

v6

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13

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

UNCLASSIFIED

14

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.”

v6

UNCLASSIFIED

15

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

UNCLASSIFIED

16

v6

…and a Miracle happens UNCLASSIFIED

17

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