Accession Number : ADA296233

Title :   The Costs of the Administration's Plan for the Army through the Year 2010.

Descriptive Note : Memorandum rept.,

Corporate Author : CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC

Personal Author(s) : Lussier, Frances M.

PDF Url : ADA296233

Report Date : NOV 1994

Pagination or Media Count : 26

Abstract : The Army's budget rose sharply during the 1980-1985 period, from $66 billion to $100 billion, then fell almost as precipitously back to $62 billion for the 1994 fiscal year. (All costs in this memorandum are expressed in 1995 dollars.) The Administration has submitted a detailed plan for the next five years that calls for a further decrease in the Army's budget to $53 billion by the year 1999. This shrinking is commensurate with a proposed reduction in the number of military personnel and major combat units during the same period. The Congressional Budget Office's (CBO's) analysis shows that if the Army is to carry out its plans for modernization programs, its budget must grow in the years beyond 1999, even if the Army itself does not increase in size. The average annual increase in the budget would need to be on the order of 2 percent during the 1999-2607 period. The Army's budget requirements would remain roughly constant or decrease between 2007 and 2010, depending on CBO's assumptions about the costs of Army acquisition programs. The need for budget increases is driven largely by the Army's plans to produce a new reconnaissance/attack helicopter, known as the RAH-66 Comanche. This program is scheduled to go into production in the late 1990s or the early part of the next decade. During the later part of the next decade, the program could require annual funding of more than $2 billion. Unanticipated cost growth could push the funding requirements of the Comanche program up even further. CBO's estimates of the annual costs of the Army's long-term plans are based, wherever possible, on Department of Defense and Army statements and the Administration's plan for 1995 through 1999.

Descriptors :   *ARMY BUDGETS, ATTACK HELICOPTERS, REQUIREMENTS, MILITARY PERSONNEL, DEPARTMENT OF DEFENSE, PRODUCTION, GROWTH(GENERAL), LONG RANGE(TIME), COSTS, HELICOPTERS, PLANNING, BUDGETS, ARMY, ARMY PLANNING, ARMY PROCUREMENT, RECONNAISSANCE AIRCRAFT.

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE