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An Analysis of Fiscal 2000 Department of Defense Conference Report

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Current status: While the Senate and House have approved the conference report, the White House is considering a veto because of accounting gimmicks and pork in the bill (see below for details). On October 13, the House approved the bill 372 - 55. On October 14, the Senate approved the bill 87 - 11.

The 11 Senators who voted no: Bayh, Boxer, Feingold, Fitzgerald, Graham, Harkin, Kohl, McCain, Robb, Voinovich, Wellstone

HIGHLIGHTS OF BILL

Total budget authority in the bill: $267.8 billion, $4.5 billion more than the Administration’s request and an increase of $17.3 billion from the fiscal 1999 enacted level.

Total military budget authority for fiscal 2000 as estimated by the Congressional Budget Office (CBO): $289.4 billion (includes Department of Defense, defense activities in Department of Energy, military construction and supplemental appropriations). That total is $9 billion more than the $280.5 billion requested by the President.

Accounting gimmicks in bill in order to stay within budget caps and free funds for other programs - $21 billion as follows:

$10.5 billion - Congress directs the CBO to reduce outlay scoring by assuming that spending will be slower than the CBO estimates.

$6.6 billion - outlays savings from designating $7.2 billion in budget authority and $1.8 billion for a pay raise as emergency spending

$2.6 billion - Federal Communications Commission auction of broadcast frequencies that probably will not be realized.

$1.2 billion - outlays savings by slowing payments to defense contractors

Pork add-ons - According to Sen. John McCain (R-AZ) in an October 14 statement, “this bill includes $6.4 billion in low-priority, wasteful spending not subject to the kind of deliberative, competitive process … more than ever before in any defense bill … there is over $6 billion worth of pork in a defense spending bill at the same time we are struggling with a myriad of readiness and modernization problems.” Sen. Daniel Inouye (D-HI), the ranking Democrat in the Senate Defense Appropriations Subcommittee, claimed credit for $387 million in projects for his home state of Hawaii in a press release.

F-22 - the compromise includes $1 billion that can be used to begin some or all of the six requested production F-22s, plus advanced procurement of $277 million for future planes and $300 million to cover termination costs if the program is canceled. More testing is also required.

Jets for Generals - The bill authorizes the Pentagon to lease six Gulfstream executive jets for its top commanders plus purchase one 737 for the same purpose. Total cost is expected to be $1 billion over 20 years.

Sanctions - The bill permits the President to waive economic and military sanctions on India and Pakistan imposed after those countries imposed nuclear tests in 1998.

Major add-ons

$375 million for Sen. Lott’s LHD-8

$315 million for 5 F-15s

[Source for the following material: conference report printed in October 8, 1999 Congressional Record, and analysis by Center for Strategic and Budgetary Assessments]

TOTAL AMOUNT IN BILL

Administration Request: $263.3 billion

House Bill: $268.7 billion

Senate Bill: $264.7 billion

Conference outcome: $267.8 billion

Increase from Administration request: $4.5 billion

Fiscal 1999 enacted Defense Appropriations: $250.5 billion (excluding $16 billion in supplemental and emergency appropriations bills)

MAJOR TITLES IN THE BILL

MILITARY PERSONNEL

Administration Request: $73.7 billion

House Bill: $72.0 billion

Senate Bill: $73.9 billion

Conference outcome: $73.9 billion

OPERATIONS AND MAINTENANCE

Administration Request: $91.2 billion

House Bill: $93.7 billion

Senate Bill: $91.9 billion

Conference outcome: $92.2 billion

PROCUREMENT

Administration Request: $51.9 billion

House Bill: $53.0 billion

Senate Bill: $54.6 billion

Conference outcome: $53.0 billion

RESEARCH AND DEVELOPMENT

Administration Request: $34.4 billion

House Bill: $37.2 billion

Senate Bill: $36.4 billion

Conference outcome: $37.6 billion

NUCLEAR-RELATED PROGRAMS

BALLISTIC MISSILE DEFENSE

Conference outcome: $4.5 billion, including $4 billion in new money and $550 million in “emergency” funding in the fiscal 1999 emergency supplemental appropriations bill. The Administration had requested $4.2 billion

NATIONAL MISSILE DEFENSE

Administration Request: $836.6 million

House Bill: $761.6 million

Senate Bill: $986.6 billion

Conference outcome: $836.6 million

THAAD

Administration Request: $611.6 million

House Bill: $527.9 million

Senate Bill: $527.9 million

Conference outcome: $560.0 billion

NAVY THEATER WIDE DEFENSE

Administration Request: $329.8 million

House Bill: $419.8 million

Senate Bill: $379.8 million

Conference outcome: $379.8 million

NUNN-LUGAR

Administration Request: $475.5 million

House Bill: $456.1 million

Senate Bill: $475.5 million

Conference outcome: $460.5 million

However, conferees rejected the Administration’s request for $130 million for chemical weapons destruction in Russia.

B-2 BOMBER (PROCUREMENT AND R&D)

Administration Request: $308.6 million

House Bill: $419.6 million

Senate Bill: $345.6 million

Conference outcome: $416.8 million

AIRCRAFT PROGRAMS

F-22 "RAPTOR" (PROCUREMENT AND R&D)

Administration request: $3.1 billion (6 aircraft)

House Bill: $1.2 billion (0 aircraft)

Senate Bill: $3.1 billion (6 aircraft)

Conference outcome: $2.5 billion (compromise result)

F/A-18E/F "SUPERHORNET" (PROCUREMENT AND R&D)

Administration Request: $3.0 billion (36 aircraft)

House Bill: $3.0 billion (36 aircraft)

Senate Bill: $3.0 billion (36 aircraft)

Conference outcome: $3.0 billion (36 aircraft)

JOINT STRIKE FIGHTER

Administration Request: $476.6 million

House Bill: $576.6 million

Senate Bill: $491.6 million

Conference outcome: $491.6 million

V-22 "OSPREY"

Administration Request: $1.1 billion (10 aircraft)

House Bill: $1.1 billion (11 aircraft)

Senate Bill: $1.2 billion (12 aircraft)

Conference outcome: $1.2 billion (11 aircraft)

F-15 "EAGLE"

Administration request: $112.7 million (0 aircraft)

House Bill: $592.7 million (8 aircraft)

Senate Bill: $332.7 million (4 aircraft)

Conference outcome: $427.7 million (5 aircraft)

F-16 "FALCON"

Administration request: $365.1 million (10 aircraft)

House Bill: $502.1 million (15 aircraft)

Senate Bill: $421.1 million (12 aircraft)

Conference outcome: $361.1 million (10 aircraft)

C-17 CARGO SHIP

Administration Request: $3.6 billion (15 planes)

House Bill: $3.1 billion (15 planes)

Senate Bill: $3.6 billion (15 planes)

Conference outcome: $3.5 billion (15 planes)

KC-130 J HERCULES

Administration request: $12.3 million (0 aircraft)

House Bill: $599.9 million (8 aircraft)

Senate Bill: $77.2 million (1 aircraft)

Conference outcome: $77.2 million (1 aircraft)

RAH-66 COMANCHE HELITOPTER

Administration Request: $427.1 million

House Bill: $427.1 million

Senate Bill: $483.1 million

Conference outcome: $467.1 million

CH-60 NAVY HELICOPTER

Administration request: $317.2 million (13 helicopters)

House Bill: $393.2 million (17 helicopters)

Senate Bill: $393.2 million (17 helicopters)

Conference outcome: $393.2 million (17 helicopters)

SHIPBUILDING

DDG-51 (DESTROYER)

Administration Request: $2.9 billion (3 ships)

House Bill: $2.9 billion (3 ships)

Senate Bill: $2.9 billion (3 ships)

Conference outcome: $2.9 billion (3 ships)

LPD-17 LANDING SHIP

Administration request; $1.5 billion (2 ships)

House Bill: $1.5 billion (2 ships)

Senate Bill: $1.5 billion (2 ships)

Conference outcome: $1.5 billion (2 ships)

LHD-8 ASSAULT SHIP

Administration Request: ——

House Bill: