Defense

August 2, 2013

Carter: Review reveals sequestration’s flaws

Tags:
Claudette Roulo
American Forces Press Service

sequester-review
The Strategic Choices and Management Review has shown that a strategic approach to cutting the department’s budget canít meet the schedule set by full sequestration, Deputy Defense Secretary Ash Carter told Congress Aug. 1.

The review, ordered by Defense Secretary Chuck Hagel, was partly an examination of the Defense Departmentís strategic options under sequestration, Carter told the House Armed Services Committee.
It also was an evaluation of the departmentís management, he added.

That’s about IT efficiencies, overhead reduction [and] compensation reform, Carter said. ìAnd none of that is strategic, but if we don’t address those issues, which we did in the SCMR, then we would have to take all of any budget cuts out of investment, modernization and force structure, which we don’t want to do.

Under sequestration, the department is required to make $470 billion in cuts over 10 years in addition to an equivalent cut already planned. The cuts this fiscal year amounted to $37 billion – implemented only in the last half of the year. Next year, they are estimated to be $52 billion.

Long before sequestration came into effect, senior defense leaders were warning that it would have devastating effects on the department and its personnel, Carter said.

As predicted, sequestration’s impacts on the department’s operations have been very unfortunate and far-reaching, he said.

The study revealed a grim outlook for the department and for national security under sequestration, Carter told the committee.

Its findings are sobering, Carter said. ìThe things we have to do under sequestration are not strategic — theyíre dumb.
Three potential budget scenarios were examined in the review: full sequestration, implementation of the presidentís proposed 2014 budget, and a middle ground between the two.

The SCMR did not make final choices among these possibilities because we hope never to have to face them, but it did map out various options to reach each budget scenario, Carter said.
There were three key findings, he said.

First, it is crucial that savings be realized through efficiencies – reductions in overhead, administrative costs and operating expenses – as well as through serious reforms to compensation for civilian and military employees, the deputy defense secretary said.

Compensation alone makes up more than half of the defense budget, Carter said.

Carter said if compensation continues to grow as the overall budget shrinks, further budget cuts will lead to reduced combat power and increased national security risk.

Even the most aggressive and ambitious compensation reform and efficiency packages were insufficient to meet the budget reductions called for in any of the scenarios, Carter said.

The SCMR showed that cuts in combat power, force structure, readiness and investment will be necessary in all three of the budget scenarios, he said.

Second, the review found that, ìa combination of carefully chosen efficiencies and compensation reforms combined with various carefully and strategically chosen alternative approaches to cuts in force structure, investment and readiness could achieve sequestration-level cuts over time,î Carter said.

Crucially, though, ìthere’s no strategically and managerially sound approach to budget cuts that can close the gap within the next few years,î he said. The effects already have been felt this year, he said, though readiness stand-downs and furloughs of civilian employees.

It takes time to downsize forces, to cut employees, to close bases, to reap savings from reforms,î the deputy secretary said. ìThese strategic adjustments take time.

The third finding is that the presidentís proposed fiscal year 2014 budget would allow the department to implement the main tenets of the defense strategic guidance, Carter said. However, if full sequestration remains in effect, he said, the department would be forced to make ìsignificantî changes to force structure and the nationís defense strategy.

Force reductions would be necessary under the presidentís budget scenario, but they would be in areas that are essentially excess to the nationís strategic needs and incur only minimal risk, Carter said.

In particular, for example, reducing the size of our ground and tactical air forces as we draw down from more than a decade of stability operations in Iraq and Afghanistan, he said.

Sequestration is showing the nation in an unflattering light, Carter said.

Friends and potential enemies around the world are watching our behavior to be sure America will remain the world’s strongest military power,î he said. ìBut we’re accepting unnecessary risk. It’s embarrassing and unsafe to be in the situation we are in Ö scrambling in this way.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines October 29, 2014

News: Unmanned rocket explodes just six seconds after taking off - A NASA rocket due to be visible across the East Coast on its way to the International Space Station has blown up on the Launchpad. IG: Former chief of wounded warrior office broke law, DOD regs - The Defense Department inspector general has recommended “corrective action”...
 
 

News Briefs October 29, 2014

F-35C makes first landing at Virginia Beach Navy base The Navy says an operational F-35C joint strike fighter has landed at Naval Air Station Oceana for the first time. Naval Air Station Oceana is the Navy’s master jet base on the East Coast. The Navy says the plane came to the Virginia Beach base Oct....
 
 

Time to turn to American technology for space launch

For the first time since the Cold War, the United States has deployed armored reinforcements to Europe. To counter Russia’s aggression, several hundred troops and 20 tanks are now in the Baltic. Yet the U.S. military is still injecting millions into the Russian military industrial complex. In late August, the United Launch Alliance – the...
 

 
Air Force photograph by Joe Davila

Boeing, Air Force demonstrate Minuteman III readiness in flight test

Air Force photograph by Joe Davila Boeing supported the launch of an unarmed Minuteman III intercontinental ballistic missile at Vandenberg Air Force Base, Calif., on Sept. 23, 2014. Boeing supported the U.S. Air Force’s succ...
 
 

Pentagon going to court for refusing to release Sikorsky data

PETALUMA, Calif. – The Pentagon is refusing to release any data on any prime contractors participating in the 25-year-old Comprehensive Subcontracting Plan Test Program. The American Small Business League launched a program in 2010 to expose the fraud and abuse against small businesses the CSPTP had allowed. As a test the ASBL requested the most...
 
 
Northrop Grumman photograph

Raytheon Griffin C flight tests demonstrate in-flight retargeting capability

Northrop Grumman photograph Northrop Grumman has received a contract from the U.S. Marine Corps for low-rate initial production of the AN/TPS-80 Ground/Air Task Oriented Radar (G/ATOR). G/ATOR is the first ground-based multi-mi...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>