Testimony
of OMB Deputy Director Joel D. Kaplan
Contingent Emergency Reserve Fund Request for FY 2005
Committee on Armed Services
United States Senate
May 13, 2004
Thank you,
Mr. Chairman and Members of the Committee, for inviting me to appear before
you today to discuss the President’s request for a $25 billion contingent
emergency reserve fund for operations in Iraq and Afghanistan, which the
President formally submitted to Congress yesterday.
In his remarks
at the Pentagon on Monday, the President reiterated this Nation’s
commitment to the brave men and women of our Armed Forces who are engaged
in Iraq, Afghanistan, and elsewhere around the world in the War on Terror.
The President has never wavered in his commitment to provide those men
and women in the field the resources they need to accomplish their missions.
Consequently, his direction to us has been clear and consistent: make
sure the commanders have the resources they need to accomplish the mission
and protect our men and women in uniform.
It is with
those men and women in mind that the President last week decided to propose
this contingency emergency reserve, to provide the commanders and the
troops in the field the confidence that the resources they need will be
there when they need them. This reserve, if enacted by Congress, will
guarantee we have the ability to respond to rapidly changing conditions
in the region, while affording the necessary time and experience after
the transition in Iraq and the elections in Afghanistan to ensure that
a Supplemental request made of the Congress in early 2005 more accurately
reflects real needs.
There are
several core principles that guided the Administration’s request
for this reserve. First, it should be made available as a contingent reserve
activated only after the President submits a request designating the funds
as an emergency and essential to operations in Iraq or Afghanistan. While
the levels requested in the 2005 base Defense request may well be sufficient
to meet all operational needs until Congress acts on an FY 2005 supplemental
early next year, the President, based on the advice and recommendations
of the Secretary of Defense, believed it was prudent to have an insurance
policy in place.
Based on
our work with the Department of Defense and the Services, it is clear
that they will need to--and can without disruption--pull forward funds
planned for the second half of the year to use in the first and second
quarter for operational needs if the tempo continues at the current high
pace. In the current environment, a need to “cashflow” from
the last two quarters in 2005 has the potential to raise concern about
the reliability of resources later in the year. We wanted to provide commanders,
as well as the troops serving in the field, with the confidence that nothing
will stand in the way of the President’s pledge to provide them
with the resources they need to accomplish their mission. A reserve guarantees
they will have what they need when they need it.
Second, the
reserve should provide adequate flexibility to allow us to respond to
a fluid operational environment and emerging requirements. The Department
of Defense and we believe that at the current pace the pressure points
in planning and executing are likely to develop in the Operation and Maintenance
accounts, and particularly Army and Marine Corps O&M. This understanding
is reflected in the allocations we have requested in the language we sent
to the Congress yesterday. We also are seeking to assure that these resources
are matched with transfer authority to promptly address changing requirements,
including emerging procurement requirements related to force protection.
Third, the
reserve should address requirements in Afghanistan and Iraq only. We believe
the base 2005 request provides ample resources to meet requirements unrelated
to the critical operational missions in Iraq and Afghanistan.
Fourth, we
want to assure that enactment of the contingency emergency reserve does
not come at the expense of the President’s 2005 base request for
the Defense Department of $401.7 billion. Early in his Administration,
the President determined that predictability in funding was critical to
fulfilling the Department’s transformation agenda. That predictability
is even more important now as the services are asked to fully engage in
the war against terror abroad even as it fundamentally transforms its
organization, infrastructure, force, and doctrine. While some may argue
to shift requirements identified in the 2005 base request into the proposed
reserve, such a shift risks creating uncertainty and disruption in the
Department’s planning and execution of key national security missions.
Finally,
I’d just like to note that this Administration has tremendous respect
for Congress’ Constitutional role, and its responsibility, in authorizing
and appropriating resources for our Armed Services. It is in deference
to this role that we want to make sure that the next supplemental request
you consider is accurate and precise as to the military’s needs.
Some have recommended that we simply extrapolate from today’s costs,
multiplying those costs over some fixed period as the basis for a request.
We have found that such estimates often mean funds are mismatched with
accounts and the requirements that actually develop. The combination of
a reserve that can be activated as needed with a future supplemental built
on actual 2005 conditions assures we will spend what is necessary to support
our troops and their vital mission.
Thank you
again for the privilege of appearing before this Committee with my distinguished
colleagues. I will be happy to take your questions. |