Atelier 2, article 8

© Prepared by Christopher Hellman, Senior Analyst, Department of Defense :
(from Center for Defense Information, February 7, 2001)

                                                 "Highlights of the FY 2001 Request"

           TOP LINE: The Administration is seeking $305.4 billion in Budget Authority (BA) and $277.5
           billion in Outlays for the military and the defense functions of the Department of Energy. Budget
           Authority over the entire Future Years Defense Plan (FYDP), which covers Fiscal Years
           2001-2005, is nearly $1.6 trillion. The request for FY'01 is $4.9 billion more than was proposed
           in last year's multi-year spending plan. In all, planned spending for the FYDP ($1,585.3
           billion) is nearly $15 billion more than last year's spending plan included for the same

           INFLATION:After taking into account the effects of inflation and higher than expected fuel costs,
           real growth in Pentagon budget authority exceeds 1 percent in FY 2001. 

           BASE CLOSURES: Calls for two additional rounds of base realignments and closures (BRAC)
           in Fiscal Years 2003 and 2005. 

           "STAR WARS" NATIONAL MISSILE DEFENSE: Contains $1.9 billion for National
           Missile Defense (NMD) for FY'01. Total NMD funding for FY 2001-2005 is $10.4 billion,
           $2.3 billion more than last year's request. In all, the request for ballistic missile defense (BMD)
           programs for FY'01 is over $4.7 billion. 

           PROCUREMENT: Includes $60.3 billion for purchase of new weapons in FY'01, reaching the
           target of $60 billion in annual procurement, although below last year's expected level for FY'01
           ($61.8 billion). This is $6.1 billion more than the current budget, an increase of more than 11%. 

           "READINESS:" Includes $109.3 billion for the Operations and Maintenance account for
           FY'01, $4.4 billion (5%) more than the current budget, and $5.5 billion more than was called for
           in the FY'00 spending plan. 

           CONTINGENCY OPERATIONS: Contains $2.2 billion for continued operations in
           Bosnia and Kosovo in FY'01, and an additional $2 billion for operations in Southwest Asia.
           Assumes an emergency supplemental appropriation for U.S. activities in Kosovo during FY'00. 

           "PUTTING PEOPLE FIRST:" Includes 3.7% pay raise in FY'01, in addition to the 4.8%
           increase included in the FY'00 budget. It reduces "out-of-pocket" housing expenses in FY'01 for
           military members living off-base from 19% to 15% of market prices, and eliminates these costs by

           TACTICAL AIRCRAFT MODERNIZATION: Includes $7.9 billion in FY'01 for continued
           development and procurement of the Navy's F/A-18E/F Super Hornet, the Air Force's F-22
           Raptor, and the Joint Strike Fighter, up from last year's reqeust of $6.6 billion. 

           "NUNN-LUGAR:" Includes $458 million for the Cooperative Threat Reduction program, which
           assists in the dismantlement of nuclear weapons and facilities in Russia and the former Soviet
           republics, as well as help control the spread of weapons and technology. Additional funds are
           included in the budgets of the Department of Energy and State.