WEBVTT 00:10.500 --> 00:11.970 The Kids. 00:12.780 --> 00:13.350 Look. At. 00:18.000 --> 00:20.960 The In. The 00:26.530 --> 00:28.970 On the It.. That. 00:30.650 --> 00:35.000 That. Of. And 00:38.500 --> 00:39.430 And That. 00:51.660 --> 00:54.750 That. We are all of.. That. 01:06.000 --> 01:12.920 That. The. Local. 01:19.000 --> 01:20.470 And yet. 01:23.500 --> 01:27.230 That. Mean of any of. 01:27.770 --> 01:34.340 The A. Few. 01:38.410 --> 01:40.390 That you on.. That. 01:47.500 --> 01:53.760 That. For your resume and. The 02:07.530 --> 02:24.600 An On. That.. That. 02:26.000 --> 02:36.000 That. We Can. 02:36.590 --> 02:37.460 Although it. 02:39.000 --> 02:45.940 They are and Right. 02:47.000 --> 02:51.700 There and and consumer. 02:53.500 --> 02:53.990 That.. At 02:55.140 --> 02:59.120 At An that. 02:59.750 --> 03:01.600 And Yeah. It. 03:05.000 --> 03:07.760 Of the That. 03:09.000 --> 03:09.080 It.. At 03:10.600 --> 03:16.690 At Look back. 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Nairn. 12:29.330 --> 12:33.050 Today nine announcing the president's fiscal year twenty fourteen 12:33.050 --> 12:33.880 budget request. 12:34.500 --> 12:35.740 A department of that. 12:36.340 --> 12:39.490 This budget request were presented based budget a five hundred 12:39.490 --> 12:41.970 and twenty six point six billion dollars. 12:43.000 --> 12:47.480 Of This budget continues to vallance the compelling news of supporting 12:47.480 --> 12:49.080 troops it. One Afghanistan. 12:50.210 --> 12:53.070 Ipl manning the president's defense strategic guidance. 12:54.280 --> 12:56.910 In sustain inequality the all volunteer force. 12:57.500 --> 13:01.330 Paul while insuring we maximize the use of every taxpayer dollar. 13:01.850 --> 13:05.640 In addresses internal imbalances within the department of defense budget. 13:06.870 --> 13:11.080 Is I discussed in my speech last week at the national defense university. 13:11.830 --> 13:14.720 Because of infrastructure and over again acquisitions. 13:15.320 --> 13:16.830 And personnel compensation. 13:17.330 --> 13:20.420 Must be addressed in order to put the department defenses budging 13:20.420 --> 13:21.670 on a sustainable path. 13:22.270 --> 13:25.050 Particularly given the pressures on our top-line budget. 13:26.220 --> 13:29.900 The request being presented a takes important steps in each of 13:29.900 --> 13:30.650 these areas. 13:31.320 --> 13:32.940 First a budget continues to. 13:33.580 --> 13:35.870 Maximize our use of resources. 13:36.540 --> 13:40.090 It proposes a set of a nation whose that's a is an additional 13:40.090 --> 13:43.500 thirty four billion dollars. So with the next five years by changing 13:43.500 --> 13:46.600 the way we do business in reducing support costs. 13:47.620 --> 13:50.970 This savings is on top of the approximately two hundred and eleven 13:51.120 --> 13:53.790 billion dollars an ongoing over and reductions. 13:54.540 --> 13:58.460 And business efficiencies adonis line in the last two budget requests. 13:59.530 --> 14:01.860 Which are still being implemented. 14:02.720 --> 14:05.460 The new in a shares being proposed include a restructuring of 14:05.460 --> 14:08.300 the civilian workforce to meet keen AIG needs. 14:08.850 --> 14:10.020 With fewer personnel. 14:10.730 --> 14:13.180 And overall military treatment facilities. 14:13.760 --> 14:16.610 In efforts to control health care costs we're taking advantage 14:16.610 --> 14:18.920 of lower prices for private sector here. 14:20.000 --> 14:22.070 These efforts are having some success. 14:22.770 --> 14:25.630 With projected healthcare spending in this budget declining. 14:26.500 --> 14:29.810 My some four% compared to our budget two years ago. 14:31.030 --> 14:34.470 With this budget to the partners requesting to consolidate infrastructure 14:34.470 --> 14:35.670 with the authorization. 14:36.210 --> 14:38.500 Of around of base realignment and. Closure. 14:40.530 --> 14:41.710 In twenty fifty. 14:43.150 --> 14:46.650 Black is a comprehensive and fair to all it allows communities 14:47.020 --> 14:51.800 a role in reuse decisions about by them for their property. 14:52.500 --> 14:54.870 And it provides redevelopment assistance. 14:56.230 --> 14:59.360 This process is in the imperfect prices. 15:00.250 --> 15:02.370 Erupt ride costs for black. 15:03.000 --> 15:06.110 This budget adds two point four billion dollars in the next five 15:06.110 --> 15:07.560 years to pay for those costs. 15:08.400 --> 15:11.200 But in the long term there are significant savings as we've seen 15:11.200 --> 15:12.830 from past rack decisions. 15:13.530 --> 15:16.650 This budget also continues a departments efforts to better align 15:16.650 --> 15:18.020 acquisition programs. 15:18.530 --> 15:22.490 With the present strategic guidance can do a lemonade are restructure 15:22.490 --> 15:24.730 those programs that are performing poorly. 15:25.830 --> 15:29.490 Over the last four years apartment is cancelled for curtailed 15:29.490 --> 15:31.800 more than thirty major acquisition programs. 15:32.450 --> 15:35.680 Rebalancing your portfolio tours platforms better she's. 15:36.220 --> 15:38.470 The twenty first entry security challenges. 15:39.070 --> 15:41.470 In making new investments in areas like cyber. 15:42.000 --> 15:45.440 And advanced intelligence surveillance and reconnaissance capabilities. 15:45.940 --> 15:49.670 In this budget that gardeners can continued to shift priorities 15:50.000 --> 15:52.380 within modernisation. Portfolios. 15:53.660 --> 15:57.720 Shifting to achieve and eight point two billion dollars in savings 15:57.720 --> 16:01.060 from weapons programs terminations in the restructuring or the 16:01.060 --> 16:02.220 next five years. 16:02.940 --> 16:06.950 As one example by revising the acquisition strategy for the armies 16:07.060 --> 16:10.740 round combat vehicle program that apart and will say war two 16:10.840 --> 16:12.740 billion dollars in development costs. 16:13.380 --> 16:18.710 This budget also increases dod use investments in its cyber workforce. 16:19.330 --> 16:21.890 Continues to ample manner rebalances to asia. 16:22.630 --> 16:26.010 And makes new investments in the flexible platforms needed for 16:26.010 --> 16:26.540 the future. 16:28.040 --> 16:31.190 Another area significant spending growth has been pay and benefits 16:31.190 --> 16:32.660 for military personnel. 16:33.710 --> 16:35.670 The current fiscal environment as demand. 16:36.220 --> 16:39.040 That we take another look at these costs which are in the represent 16:39.040 --> 16:42.460 one hundred and seventy point two billion dollars or roughly. 16:42.650 --> 16:46.620 One third of the fiscal year twenty fourteen budget request. 16:47.250 --> 16:50.630 In this budget the department estimating and new packages military 16:50.630 --> 16:52.080 compensation proposals. 16:52.590 --> 16:56.110 Including I'm honest slowing of their growth of military pay 16:56.110 --> 17:01.710 by implementing a one% pay raise for service members in twenty 17:01.710 --> 17:02.380 four chain. 17:03.110 --> 17:06.110 The department is also seeking additional changes to the trike 17:06.110 --> 17:09.110 your program and the fy twenty fourteen budget. 17:09.710 --> 17:13.200 To bring the beneficial risk are. Sure closer to the levels envisioned 17:13.360 --> 17:14.110 when the program. 17:14.630 --> 17:15.690 Was first implemented. 17:16.690 --> 17:20.120 Particularly this goes for working age retirees. 17:20.780 --> 17:23.610 These changes which are the strong support of the joint chiefs 17:23.610 --> 17:27.500 of staff save about one point four billion dollars in a for a 17:27.500 --> 17:28.510 twenty four team. 17:29.120 --> 17:32.780 In a total of twelve point eight billion over the next five years. 17:34.320 --> 17:37.940 I am committed as well as all the leadership a at the Pentagon 17:38.420 --> 17:41.710 the working in partnership with commerce and all stakeholders 17:41.710 --> 17:43.350 should implement needed reforms. 17:44.320 --> 17:48.700 Because kirk fiscal realities demand that we make tough decisions 17:49.040 --> 17:50.850 that and then deferred in the past. 17:51.500 --> 17:55.240 The longer we put this off the harder some of the particularly 17:55.240 --> 17:58.940 given the and certainly the still exists of our future levels 17:58.970 --> 17:59.910 of defense spending. 18:00.810 --> 18:02.500 Let me now address that uncertainty. 18:03.810 --> 18:05.100 As we all know the apartment. 18:05.810 --> 18:09.050 Is in the prices of implementing steve budget cuts for the current 18:09.050 --> 18:11.570 fiscal year as a result of sequester. 18:12.200 --> 18:16.600 Reductions of up to porn forty one billion dollars forty one 18:16.600 --> 18:19.290 billion dollars that will lead to the suspension are important 18:19.290 --> 18:23.880 activities curtailed training. And could result in furloughs 18:23.880 --> 18:25.020 and civilian personnel. 18:25.740 --> 18:29.290 Give these cuts persisted defense budgets would be reduced by 18:29.290 --> 18:32.040 another five hundred billion dollars over the next decade. 18:33.110 --> 18:36.720 The presence budget request offers a comprehensive deficit reduction 18:36.720 --> 18:40.310 plan that would permit converse to eliminate sequester each. 18:41.030 --> 18:44.390 That plan a virt what would otherwise be another significant 18:44.390 --> 18:46.200 reduction in the defense budget. 18:46.730 --> 18:48.790 Some fifty two billion dollar two. 18:49.410 --> 18:53.040 Thing along and five hundred billion over a decade. 18:54.060 --> 18:57.050 Instead it calls for one hundred and fifty billion additional 18:57.050 --> 18:59.330 defense savings over ten years. 19:00.030 --> 19:04.090 Unlike sequestered these cuts are back load. If occurring mainly 19:04.090 --> 19:07.370 in the years beyond fy twenty eighty. 19:08.180 --> 19:12.480 While no agency welcomes further budget cuts the presence deficit 19:12.480 --> 19:16.100 reduction proposal requested in this budget years in apartment 19:16.100 --> 19:18.640 time and that's important time. 19:19.240 --> 19:23.760 To achieve these longer term savings and without disproportionate 19:23.760 --> 19:25.850 harm to modernisation in readiness. 19:26.600 --> 19:30.740 The budget categories way that will provide the most immediate savings. 19:31.350 --> 19:35.380 But also encompass most of our military capabilities. 19:36.300 --> 19:39.850 We need a plan wisely for a long term future of budget constraints 19:40.270 --> 19:43.500 witherow clear-headed announces that is anchored in the presence 19:43.500 --> 19:44.970 defense strategic guidance. 19:45.690 --> 19:49.100 That is why directed the strategic choices in management review. 19:49.890 --> 19:52.860 This review will examine the choices that underlie our defense 19:52.860 --> 19:55.400 strategy posture in investments. 19:55.920 --> 19:59.210 Identify the opportunities to more efficiently and affect the 19:59.210 --> 20:00.410 restructurings park. 20:00.930 --> 20:05.690 And develop options to deal with a wide range of future. Budgetary circumstances. 20:06.280 --> 20:07.690 In that review was underway. 20:09.240 --> 20:12.450 The purpose of the review was to ensure that the department is 20:12.450 --> 20:15.610 prepared to defend the nation and america's strategic interests. 20:16.570 --> 20:17.170 No matter. 20:17.730 --> 20:19.720 The outcome of this budget debate. 20:20.620 --> 20:23.690 Going forward every decision must be carefully weighed against 20:23.690 --> 20:27.650 our national interests it must be worthy of the service sacrificed 20:27.880 --> 20:30.910 in loyalty of our men and women in uniform and their families. 20:31.610 --> 20:35.050 These decisions was also the made with the partnership of conquers. 20:35.720 --> 20:38.320 And I look for the having this important discussion about our 20:38.320 --> 20:41.680 national security priorities an interest mid-eighties in the 20:41.680 --> 20:42.300 weeks it. 20:43.500 --> 20:47.840 Without all turn to general DMC germany joint use in and will last. 20:48.480 --> 20:53.720 Of our copped or Banao of and john Ramsey from the joint chiefs 20:54.150 --> 20:57.600 to respond a specific questions. But good general dems Antarctica 20:57.600 --> 21:01.620 to question from these complete before we ask federal railing 21:01.620 --> 21:02.990 general grant thank. 21:04.360 --> 21:05.500 Thank you machete jerry. 21:06.270 --> 21:10.070 We built this budget to prepare the joint force for an uncertain 21:10.070 --> 21:14.570 future in a insurers store the versatility. Have a more affordable 21:14.570 --> 21:17.850 military for a more sustain a more the french strategy. 21:18.560 --> 21:21.750 But less which'll the clear about what it does not do the fy 21:21.750 --> 21:25.700 fourteen defense budget does not reflect the for sequester asian amount. 21:26.090 --> 21:30.580 However as the secretary defense said it does impose less reduction 21:30.580 --> 21:31.970 and give us more time. 21:32.560 --> 21:36.860 Never lashed uncertainty percentage about what the top line will 21:36.860 --> 21:38.890 be for this and any future budget. 21:39.610 --> 21:42.650 And orders in include fines to restore lost readiness. 21:43.320 --> 21:47.120 We don't know yet the fallen factor the Kosh the recovery from 21:47.150 --> 21:50.410 the readiness. Sure follows that we're experiencing this fiscal year. 21:51.040 --> 21:54.950 As expected we've already curtailed or cancel training for many 21:54.950 --> 21:59.050 units approach the services specifically those should not preparing 21:59.050 --> 21:59.680 to deport. 22:00.480 --> 22:05.040 And it's more expensive to get ready then it is to stay ready. 22:05.820 --> 22:10.180 Recovery crotch from will compete with costs to build the future 22:10.180 --> 22:10.970 joint force. 22:11.720 --> 22:15.180 She'll what does this budget do and invest in our prayers it 22:15.180 --> 22:20.020 quiche the forge imbalance this supports our for deployed operations 22:20.420 --> 22:23.980 in a ponce finding for emerging capabilities censure cyber. 22:24.500 --> 22:28.160 In finds those conventional and those nuclear capabilities that 22:28.160 --> 22:30.770 have proven show essential to our defense. 22:31.280 --> 22:35.270 And also lowers manpower crossed reduces excess infrastructure 22:35.650 --> 22:39.870 to make health care more sustainable. Most importantly and protection 22:39.870 --> 22:43.450 vesta meant been work. I've often described as a real decisive 22:43.450 --> 22:45.030 advantage an editor people. 22:45.710 --> 22:49.610 It treats being the best led the best trained and the best ickworth 22:49.610 --> 22:53.280 military as the non-negotiable and part of. 22:54.110 --> 22:57.440 As you know I just returned from germany and Afghanistan I had 22:57.440 --> 23:00.820 the honor of recognizing one of our nation's most humble and 23:00.820 --> 23:03.670 effective military servants general carter hand. 23:04.200 --> 23:07.320 And every and lusting later and a week ten of our nation's sands 23:07.320 --> 23:08.960 and daughters are Byron airfield. 23:09.590 --> 23:12.360 I also spoke with senior leaders in our troops in the field. 23:13.110 --> 23:16.770 Budget uncertainty wage on their minds for those on the front 23:16.770 --> 23:19.710 line as they trash that will get them what they need. 23:20.300 --> 23:20.840 And we well. 23:21.820 --> 23:22.960 They're less confident. 23:23.500 --> 23:28.270 That that that when they return home to a force that trains hardin 23:28.270 --> 23:31.720 stays ready and they wanna make sure there are part of that training 23:31.720 --> 23:35.690 hard and stand ready with an opportunity and an obligation with 23:35.690 --> 23:39.040 the mission any future budget to restore their confidence. 23:39.780 --> 23:43.080 The forces looking test a lead through this period of transition 23:43.310 --> 23:44.660 more get doing a long. 23:45.180 --> 23:48.510 As i've said before we knew no predictable funding stream and 23:48.510 --> 23:52.080 full flexibility to keep the force in balance. 23:52.750 --> 23:55.740 This is the message that I will take to converse tomorrow. 23:57.370 --> 23:59.200 And gentlemen to their loved. 24:00.000 --> 24:01.500 Secretary of 24:03.000 --> 24:07.120 For the fact up to the budget Jones's you dispel wind of real 24:07.120 --> 24:10.250 world price six to the development of the korean peninsula. 24:11.030 --> 24:14.940 Of what would be the consequences of north korean ballistic missile 24:14.940 --> 24:16.780 launch which no word expected. 24:17.290 --> 24:18.640 Or the boarding with more. 24:19.320 --> 24:21.510 Because that may have to really the quest the job. That's the 24:21.900 --> 24:25.970 whole close to train of novels is the U.S. they not critters 24:25.970 --> 24:28.840 to being able to of maybe to preserve war it. 24:29.500 --> 24:31.660 Of mussel within reach japan or for. 24:33.110 --> 24:37.430 Well on our began and then the The best general DMC. 24:38.210 --> 24:40.330 The finishing line of questions. We've grown. 24:41.170 --> 24:42.280 First it. 24:42.920 --> 24:46.660 This country you know States of america our allies in the United nations. 24:47.670 --> 24:49.320 A a has been very clear. 24:50.030 --> 24:51.960 That to you know as korea. 24:52.500 --> 24:55.060 Are there has been. 24:56.090 --> 24:57.800 With its Velho close rhetoric. 24:58.530 --> 24:59.560 Was actions. 25:00.500 --> 25:04.330 Okay and then there's caving very close to a dangerous lie. 25:05.050 --> 25:11.380 Of Their actions and there'll words of have not helped diffuse. 25:11.890 --> 25:17.700 A combustible situation and the it it is I believe the certainly 25:17.790 --> 25:21.970 the and ten and hope will of of all our allies certainly this country. 25:22.620 --> 25:26.910 Um that that their rhetoric be ratcheted down those actions should 25:26.910 --> 25:31.570 be neutralized and it that's in the interest of of a more countries 25:31.970 --> 25:34.220 now in the event the dead does not occur. 25:35.000 --> 25:38.400 And as we are said did many times our country. 25:39.140 --> 25:43.420 Is fully prepared to deal with the any contingency any action. 25:44.060 --> 25:47.070 That to that north to korea may. 25:47.680 --> 25:50.850 A a take or any provocation. 25:52.030 --> 25:54.040 The to they many instigated. 25:54.620 --> 26:00.380 And a we have contingencies of prepared a to do their. 26:01.000 --> 26:05.590 And with that said and how many ask good general down C four 26:05.770 --> 26:10.030 of his remarks in that will get us into your. Second question 26:10.260 --> 26:14.200 twelfth the pressure many of the north Koreans to achieving the 26:14.200 --> 26:18.290 miniature education of the nuclear devise shannon ballistic. 26:18.290 --> 26:21.630 Missile is is really a matter of is a class right there. 26:22.090 --> 26:27.200 But they have conducted two nuclear tests. They have the conductors 26:27.200 --> 26:29.750 several successful ballistic missile launchers. 26:30.330 --> 26:34.330 And In the absence of concrete evidence to the contrary we have 26:34.330 --> 26:37.430 to assume the worst case and that's that's why we're posture 26:37.430 --> 26:38.180 is we are today. 26:40.310 --> 26:40.920 This is a great. 26:41.570 --> 26:44.580 With. From the services of. 26:45.890 --> 26:48.580 More than aren't has the splurges less we can and do you. 26:49.500 --> 26:54.020 In your speech unit specific weapons to go water from. 26:54.860 --> 26:59.820 News that the that we're form don't plan and cost really no issued 26:59.890 --> 27:00.630 the mistakes and 27:02.500 --> 27:06.230 Is it time moving passes budget for the department and that kind 27:06.230 --> 27:08.180 of leads in am an of. 27:09.500 --> 27:14.380 The the concept of border nichols a was joint decision is you 27:14.380 --> 27:15.920 know which are you all. 27:16.700 --> 27:17.270 From the air. 27:18.150 --> 27:20.980 What twenty producing I go will. 27:21.660 --> 27:25.070 While the chairman joint chiefs to respond in those of more for a. 27:26.000 --> 27:31.910 A about the I think and what came out of the corner your because 27:32.350 --> 27:35.470 there was a modernization. 27:36.090 --> 27:39.970 Of our fore structure in reality of the integration will force 27:39.970 --> 27:43.000 structure that to was needed at the time in. 27:43.870 --> 27:44.470 I think. 27:45.000 --> 27:49.940 Of Brought a VP operation in the capability to our our armed forces. 27:50.590 --> 27:51.470 Have to deal. 27:52.000 --> 27:55.500 On with the realities of what was coming it could backing and 27:55.860 --> 27:59.060 of the twentieth century in how we integrated our forces and 27:59.150 --> 28:00.570 commands of of. 28:01.080 --> 28:05.200 What I was referring to of was a few it noted. I think. 28:07.030 --> 28:11.190 That environment at that time where you of world budget issues. 28:11.480 --> 28:12.000 We're not. 28:12.580 --> 28:14.780 Of primary a factor. 28:15.330 --> 28:16.320 It on. 28:17.000 --> 28:20.280 The and in much of that debate now I was in the commerce at the 28:20.280 --> 28:23.690 time and I was an interested citizen. 28:24.230 --> 28:30.220 In a the We're doing of was aware of what was going on after 28:30.220 --> 28:33.350 twelve years nissan and and far more familiar with that I was 28:33.350 --> 28:37.550 is because it's a very in and making the issue next but it and 28:37.580 --> 28:41.900 that the context of of women what they did that time. It is is 28:41.960 --> 28:44.360 different in one sense on on budget. 28:45.030 --> 28:48.510 On the boys environment. But it's not under for as I think I 28:48.770 --> 28:53.970 I tried to know in the speech in that these are defining times. 28:53.970 --> 28:54.700 We're living. 28:55.450 --> 28:59.810 There added defining time it in the world war two world events 29:00.170 --> 29:04.730 if it in these it was a defining time for a different a different reason. 29:05.540 --> 29:09.570 But I was an important for and that the leadership of our country 29:09.570 --> 29:13.100 and that kind of intrusion which doing we enough to bi-partisan. 29:13.850 --> 29:15.630 Leadership came together. 29:16.390 --> 29:20.330 To make that happen Seoul and all in a five favored confused 29:20.330 --> 29:24.150 you further was clarified anything but that was that was mine 29:24.150 --> 29:29.370 ten that not the challenge the fundamental context. And foundation 29:29.370 --> 29:33.290 will water nichols but it and that the show the difference of 29:33.690 --> 29:36.970 we're our priorities were in factoring and what the what the 29:36.970 --> 29:38.230 environment wasn't the time. 29:38.770 --> 29:41.220 The budget a surely of that environment vista. 29:42.000 --> 29:46.250 Are much more so than last and martini if there's jcr order net 29:46.250 --> 29:50.800 coz drove remarked of services to work together as a joint team. 29:52.000 --> 29:56.260 On the last ten years of war have made it crystal clear that 29:56.290 --> 29:58.900 we will on the flight issue joint team show. There's there's 29:58.900 --> 30:02.660 no and macneice sas city and driving us together the services 30:02.660 --> 30:06.420 to understand that there are future is in the in the joint communique. 30:07.500 --> 30:11.750 First part question this budget is predicated on the hope that 30:11.940 --> 30:15.300 this balanced deficit reduction plan to be excepted by converse 30:15.640 --> 30:18.260 interested in getting hit with five hundred billion dollars will 30:18.260 --> 30:21.170 be reduced by a hundred fifty billion dollars of the next ten years. 30:22.030 --> 30:25.640 Realistically you both know polanski this is network that in 30:25.640 --> 30:26.360 the west year. 30:26.910 --> 30:30.380 Was the chances of is packaged passing if it does have. 30:30.890 --> 30:32.860 When you execute plan be. 30:34.210 --> 30:38.200 Think I was received restoration budget earlier than the election. 30:38.200 --> 30:41.430 She any weren't scare the hell of the industrial fit for our 30:41.430 --> 30:46.290 give you a imagine and to give them see me letters by a couple 30:46.290 --> 30:51.750 of observations them to your question. I am the first. 30:52.870 --> 30:53.680 That's why. 30:54.560 --> 30:56.870 I directed ID every sector defense. 30:57.810 --> 30:58.630 Page cornered. 30:59.160 --> 31:01.330 Working along with the german joint chiefs. 31:02.000 --> 31:03.070 To undertake. 31:03.650 --> 31:08.460 A is strategic choices in and our budget to our in management review. 31:09.220 --> 31:13.470 To address the reality of what we alone with a winning without 31:13.470 --> 31:17.210 them that is reality each you know to see frustration is war. 31:18.140 --> 31:22.800 But interestingly enough both the house and senate budget resolutions 31:22.800 --> 31:24.160 as well as the president. 31:25.000 --> 31:26.180 Are the budget. 31:27.330 --> 31:31.460 A part about the same and it is a real age to the amount of money 31:31.460 --> 31:32.600 for the defense department. 31:33.430 --> 31:38.300 Now I don't they anybody and it is minimizing the reality of 31:38.370 --> 31:39.780 the C quest rationing. 31:40.500 --> 31:45.970 As war and i've noted is it is Marty as we are preparing for 31:45.970 --> 31:49.780 their reality. We're taking significant cuts of this fiscal year 31:50.230 --> 31:51.890 how but of the same time. 31:52.610 --> 31:56.310 Have we have the as a representative government. 31:57.200 --> 32:02.390 The an opportunity to get beyond that and hopefully find a budget 32:02.390 --> 32:06.250 resolutions both from the diverse and In the president. 32:06.930 --> 32:12.430 The and That will a lawless of that not only cymru flexibility 32:12.430 --> 32:13.550 wasn't numi numbers. 32:14.320 --> 32:17.300 And and we're also you look at. 32:17.810 --> 32:21.970 This is a six hundred billion dollar enterprise his partner defense. 32:22.640 --> 32:28.750 That he you can she effort budget dynamics in planning in a month 32:28.750 --> 32:30.990 or two the these are long term. 32:31.500 --> 32:34.330 I'm admits so we have to plan for. 32:34.860 --> 32:37.520 Budgets of course is weighing infinity has a budget. 32:38.630 --> 32:41.780 Not on mindful of sea quest ration. 32:42.530 --> 32:46.340 In a works coming down the road if nothing is done if your for 32:46.340 --> 32:48.960 compromise can be made on a new budget to that. 32:49.700 --> 32:52.910 We are planning for every eventuality again. That's why. 32:53.490 --> 32:54.220 I directed. 32:55.100 --> 32:59.650 Of that the strategic review because it may not happen but the 32:59.860 --> 33:04.320 of this is uncertain I think that's the holy and mike I mentioned 33:04.320 --> 33:11.340 are of a little Marty and we are living in a world of complete. Uncertainty. 33:14.060 --> 33:18.250 Of the flexibility that we need to manage any institution needs 33:18.250 --> 33:18.940 to manage. 33:19.530 --> 33:23.200 Tom from is not there and the in the same where that we needed 33:23.200 --> 33:24.760 to be there and hopefully we'll be. 33:25.430 --> 33:29.740 And up the other part of that is high at this is why the presence budget. 33:30.530 --> 33:35.020 A Numbers are particularly important because of the one hundred 33:35.020 --> 33:40.030 and fifty billion dollars to it in his budget we're next in years 33:40.410 --> 33:44.550 most of that is of the backing and if it gives this institution 33:44.550 --> 33:45.200 the time. 33:45.870 --> 33:48.760 That to manage and respond in a just. 33:49.350 --> 33:54.330 To the staying the fulfilling is to and from feeling. 33:55.070 --> 33:58.150 The strategic interesting guides not only of what the president 33:58.150 --> 34:01.970 has given us institution a couple years ago. But also our national 34:01.970 --> 34:05.740 security interest our readiness interests that protect the security 34:05.740 --> 34:09.230 this nation have and that's what what we deadlock all those options 34:09.230 --> 34:12.700 a and we'll be actors of budget gimmicks that can get flowing 34:12.730 --> 34:15.980 but hundred fifteen joined are just are you team most of people 34:15.980 --> 34:20.140 is rumored gonna have that covering defense and Well and I'd 34:20.140 --> 34:23.990 in a get into the it and they're going to get into of of eighteen 34:23.990 --> 34:27.710 whether she come to fan and the back in are here that it is what'd 34:27.710 --> 34:31.860 years and that's what we've got a managing plan for a and then 34:31.910 --> 34:34.020 to your bigger point. Of prepare. 34:35.000 --> 34:37.480 For whatever eventuality is that this coming. 34:38.370 --> 34:43.250 Yeah thing is again the korean tony. I mean we've heard a nice 34:43.250 --> 34:47.150 a for some time that we need certainty time and flexibility time. 34:47.810 --> 34:52.020 So that you are playing the sect using the of residents defense 34:52.020 --> 34:55.930 strategy for mere know as the foundation for running to serve 34:55.930 --> 34:59.160 roche versions alternative futures. One of which is for sequester 34:59.160 --> 35:02.360 ship because I want to be able to tell the secretary this is 35:02.360 --> 35:03.640 what that force looks like. 35:04.220 --> 35:07.160 This is what it can do this you what can to show and and I think 35:07.160 --> 35:08.520 we're doing and their diligence for. 35:09.080 --> 35:16.060 Secretary of The a Human Carrefour of this the Pentagon has tried 35:16.060 --> 35:16.910 to change. 35:17.500 --> 35:18.840 For slowdown the cuts. 35:19.390 --> 35:20.520 Of healthcare. 35:21.250 --> 35:25.570 Of what's different this time they perhaps you are more optimistic 35:25.570 --> 35:28.060 that covers from a kind of changes that you. 35:28.660 --> 35:33.990 Read the to the Budget the from the Pentagon live. Now my own 35:33.990 --> 35:37.340 of you who have in your pocket my voting record on it is but. 35:38.000 --> 35:40.070 On the there's a big difference. 35:40.690 --> 35:44.720 When I was in Connor's I left converse in january of two thousand 35:44.720 --> 35:45.170 and nine. 35:46.390 --> 35:49.130 That that was of those you know rioted at the 35:50.500 --> 35:53.490 At the fry man of the global financial crisis. 35:55.150 --> 35:59.170 A and all this was coming so the last four years and i've and 35:59.170 --> 36:00.040 our commanders. 36:00.760 --> 36:03.640 By haven't had to do without as a as a member of United States 36:03.640 --> 36:08.060 senate but it goes back to your question when I was in this after 36:08.060 --> 36:10.570 those twelve years. We inhabit kind of pressures. 36:11.370 --> 36:14.340 It all whether they when even close don't what we're dealing 36:14.340 --> 36:19.570 with now that's the big air force the fiscal realities are forcing 36:19.570 --> 36:23.440 down now some tough choices and some big decisions that I have 36:23.440 --> 36:25.380 been made when we don't have any choice here. 36:26.050 --> 36:30.480 The because because if we don't start getting all of this in 36:30.480 --> 36:34.640 moving this that for some hide while was making some tough choices 36:35.120 --> 36:36.770 with our snappy partner. 36:37.530 --> 36:41.350 That means of we can help manage it. We can help oppose we can 36:41.350 --> 36:47.380 be part of us but on the the commerce is is it is hugely critical 36:47.540 --> 36:51.730 component of all that of all that we need to do but that's a 36:51.730 --> 36:55.920 big to the difference where you know I can program secretary 36:55.920 --> 36:58.730 we good we've got a to ensure fashion. This magnitude. 36:59.230 --> 37:02.410 We've got to the to we've got to take them across the entire 37:02.410 --> 37:05.860 enterprise from of work and that's why my just ETF that's what 37:05.860 --> 37:07.710 I instructed in my direction on. 37:08.290 --> 37:09.910 On the strategic. 37:10.560 --> 37:15.150 Choices in the it management review gets to look at everything. 37:15.720 --> 37:19.670 They're everything's on the table has to be until it was a complete 37:19.670 --> 37:24.510 and When you expect results of that review the reviewers. I'm ongoing. 37:24.670 --> 37:26.140 Yeah and a. 37:26.650 --> 37:28.580 I'd pariah as that being getting. 37:29.160 --> 37:31.970 The reports primer supports along the way. 37:32.550 --> 37:36.070 We're looking at to try and have is completed by the end of next 37:36.070 --> 37:37.760 to the next next month. 37:39.000 --> 37:43.060 Thank you for that we pour in korea for a moment. What is your 37:43.090 --> 37:46.980 of both of you gentlemen please your father. Why you aren't what. 37:48.500 --> 37:52.480 It is up to right now this you've looking for war is looking 37:52.480 --> 37:55.680 to just by his way back to the negotiating table. Insert. 37:55.680 --> 37:58.270 You said that he is blocking close to what wine. 37:58.900 --> 38:01.920 Should the American people as we sit here today be worried there 38:01.980 --> 38:03.750 are headed toward war with korea. 38:04.370 --> 38:09.350 Well first of the he'd as an check with me on is decisions are 38:09.400 --> 38:12.720 I wish feeling each doing all year and all the does with the transfer. 38:13.270 --> 38:13.970 He out. 38:14.690 --> 38:20.590 To the morale of the reality is it it that the the he is unpredictable. 38:21.500 --> 38:26.230 Of that country is time predictable if that is the reality that 38:26.230 --> 38:29.940 we're dealing with handed as he you prepare for every contingency 38:30.320 --> 38:34.800 as to you in we are which I think it's been made very clear a. 38:35.500 --> 38:40.060 Am on a lot clear was on capitol hill yesterday IMF a I think 38:40.060 --> 38:41.380 with pretty deep into that. 38:42.140 --> 38:43.920 Has to should the American people be. 38:44.710 --> 38:47.580 Arm concern about their safety and security. 38:48.160 --> 38:50.920 Of what we have every capacity. 38:51.500 --> 38:56.480 The up to deal with any action that I was korea would take to 38:56.480 --> 39:00.580 protect this country and the interests of this country nrf center 39:00.580 --> 39:04.700 follow up the fleet. So we have the capacity to take action if 39:04.700 --> 39:05.560 they do something. 39:06.170 --> 39:11.160 To suggest that U.S. norhtern strategy used to respond once north 39:11.160 --> 39:13.970 korea would tip would take of first at. 39:14.710 --> 39:18.370 What if you see something to respond to protect the step of more. 39:18.890 --> 39:22.810 Than their hand this often in a moment do general dempsey but 39:23.080 --> 39:24.750 I don't discuss a. 39:25.300 --> 39:29.070 And ongoing general dempsey discusses operations in the specifics 39:29.150 --> 39:34.780 a lot of what are contingency plans a Colonel. Well and it that 39:34.780 --> 39:39.090 the military shadows to do three things equally. Well D terror ocean. 39:39.120 --> 39:41.140 The terror enemy actions. 39:41.880 --> 39:45.460 Assure our allies and then N from that and we have options in 39:45.490 --> 39:49.850 every one of those bands to offer to our senior leaders. 39:50.500 --> 39:54.770 And this is out chechen them as fires and knowing what the the 39:54.770 --> 39:59.030 air can Shandong is about you know whether it prescott for said 39:59.030 --> 40:02.160 about the defense department of joran being. 40:02.810 --> 40:06.330 Hundreds of billions of dollars and reductions for the good of 40:06.330 --> 40:09.870 the American people show that the United States remarking can 40:09.870 --> 40:13.770 get back on a more solid economic foundation and what is can 40:13.770 --> 40:17.080 join and they are he starting is people with a military first 40:17.080 --> 40:19.490 policy is pretty hard for us to figure that out. 40:20.050 --> 40:22.420 Center thank you. Thank you for. 40:23.260 --> 40:23.730 Of. The 40:28.180 --> 40:31.500 Of. And 40:33.000 --> 40:35.660 The Men and the maneuver. 40:36.320 --> 40:36.870 Battle after. 40:37.420 --> 40:40.460 All place them what we're going to say that this second part 40:40.460 --> 40:45.630 of the Of we love filing break in the fourth of the service prevents. 40:46.260 --> 40:50.430 A volley donate any introduction for those of a working with 40:50.430 --> 40:54.330 the of fail perspective that's from for. 40:55.200 --> 41:00.720 And the federal for Ramsey day care here to go through it all 41:00.720 --> 41:02.410 more detail the that budget. 41:03.000 --> 41:06.930 And I think some your question before distance service. So with 41:06.930 --> 41:09.710 that you are sustenance there in the market five. 41:10.450 --> 41:14.330 K and goold they can get slides fleas hard role today is to give 41:14.330 --> 41:18.000 you an update to our non addition to a description the twenty 41:18.000 --> 41:21.430 fourteen budge request moment start with a brief update on two 41:21.430 --> 41:25.000 thousand and thirteen because what's going on now will influence 41:25.030 --> 41:28.210 the two thousand and fourteen and then gentlemen's and I'll do 41:28.210 --> 41:29.650 it ted team aspects live. 41:30.690 --> 41:34.620 It's so we're making major changes in two thousand and thirteen 41:34.620 --> 41:37.840 that are going to have significant and adverse effects project 41:37.840 --> 41:41.810 leon military readiness and the me talk to what's going on next slide. 41:42.500 --> 41:45.630 We are very flees to have an Appropriations bill from the United 41:45.630 --> 41:48.700 States Carter's a very helpful in a number of ways to to major 41:48.700 --> 41:52.400 problems remain one sequester a Shinya still an affect on of 41:52.400 --> 41:55.840 this legislation total cut as much as forty one billion I think 41:55.840 --> 41:58.750 you all know it has to be across the border. What's called program 41:58.750 --> 42:02.030 project nativity. But two thousand and five hundred line items 42:02.030 --> 42:04.540 in the department budgeted pick up of the same percentage. 42:05.180 --> 42:09.030 That are or go budgets are cut by sea quest ration that we have 42:09.030 --> 42:12.430 made the decision that we or protect the operating portion of 42:12.430 --> 42:15.250 that local budget for me reductions we can't leave gentle done 42:15.250 --> 42:18.240 for dinner troops in Afghanistan without the funds they need 42:18.240 --> 42:21.500 to protect themselves and to reach a responsible conclusion to 42:21.500 --> 42:25.530 the war in the oil rig in do that a Ceasar kadena base budget 42:25.530 --> 42:28.800 the operation main as portion of the base budget and saw focus 42:28.800 --> 42:32.010 more on the base budget we have another problem we're spending 42:32.010 --> 42:35.810 more in our of all budget do we anticipated two years ago and 42:35.810 --> 42:36.640 I was put together. 42:37.150 --> 42:41.020 Force to the higher operating tempo and higher transportation costs. 42:41.300 --> 42:44.290 So the go the next loaned with these together the slide shows 42:44.290 --> 42:50.310 you reductions in our base on a and budget in the active forces 42:50.310 --> 42:53.610 are can move money around and between accounts that general and 42:53.610 --> 42:56.190 are sequestration so we pick the largest on the active account 42:56.580 --> 42:59.240 relatively that the be thirteen requests role and what we think 42:59.240 --> 43:03.390 we need sea quest ration cuts eleven billion dollars out of that 43:03.390 --> 43:05.980 based on M budget for active forces. 43:06.540 --> 43:10.340 We decide are protect our wartime operations as I told you that 43:10.340 --> 43:12.810 means who gonna take that I'll call money out of the basis another 43:12.810 --> 43:13.440 four billion. 43:14.130 --> 43:17.140 Fortunately the continuing resolution jet the money there on 43:17.140 --> 43:19.730 Appropriations in you mousy from the cross out numbers of that 43:19.730 --> 43:20.830 there was that's gone. 43:21.350 --> 43:23.740 But we're seven to ten billion dollar. Sure we think. 43:24.290 --> 43:28.760 In a our needs for oak go for the fiscal thirteen and yet all 43:28.760 --> 43:31.700 it up where twenty two to twenty five billion dollars short in 43:31.700 --> 43:35.640 these budget on and for active forces fifteen seventeen% with 43:35.640 --> 43:39.060 about six months to go since or roughly double it and and give 43:39.060 --> 43:43.570 you a sense all squire having such problems is not just see quest rationed. 43:43.570 --> 43:45.250 That's also local problems. 43:45.810 --> 43:48.950 Next slide we warm do this across the board some programs are 43:48.950 --> 43:50.190 exempt are protected. 43:50.960 --> 43:54.270 Of the military personnel finding exam by law and vera singly 43:54.270 --> 43:56.900 so or the senate confirmed political appointee use. 43:57.540 --> 44:01.610 By policy will exempt of Afghan. We're time operations our wounded 44:01.610 --> 44:03.520 warrior programs and some others. 44:04.230 --> 44:07.640 And we all protects that is to the so we can we've ward cuts 44:07.950 --> 44:11.570 in some are deployed forces especially first of late forces in 44:11.570 --> 44:13.480 korea and other deployed forces. 44:14.000 --> 44:16.790 Intelligence surveillance and reconnaissance assets in critical 44:16.790 --> 44:19.620 theatres and on a blind ourselves and in general we wanna make 44:19.620 --> 44:23.300 clear to our potential adversaries that even though or have an 44:23.300 --> 44:26.400 some budgetary problems. We're still there and we will protect 44:26.400 --> 44:27.990 the United States and this elyse. 44:28.750 --> 44:31.530 Next slide so we're reviewing most to the rest of the programs 44:31.530 --> 44:34.750 are going to get caught now sometimes by a lot. We started SIM 44:34.750 --> 44:39.610 near term actions in january hiring freezes return affecting 44:39.610 --> 44:43.010 and widespread basis releasing of temperate term employees cuts 44:43.010 --> 44:47.710 in facilities maintenance or gonna have to do a lot more to accommodate 44:47.710 --> 44:48.780 the shortfalls. 44:49.430 --> 44:53.400 We will for example who are not example a major will have to 44:53.400 --> 44:57.730 make major cutbacks in training and maintenance and and a moment 44:57.730 --> 45:00.270 and we'll let general Ramsey tell you the effects that those 45:00.270 --> 45:00.810 are having. 45:01.380 --> 45:04.340 We are looking at the possibility of furloughs for our civilian 45:04.340 --> 45:08.030 employee use these gentle role prone ships. We need to do that 45:08.030 --> 45:11.540 we are now started the notification process with converse and 45:11.540 --> 45:14.180 with a ventures or civilian employees we're start of the union 45:14.180 --> 45:17.770 bargaining we're not gonna try tear. It has some special problems 45:17.820 --> 45:21.570 that we can come back to and then there'll be potentially some 45:21.570 --> 45:25.950 disruption in a at least some of up our investment programs as well. 45:26.530 --> 45:30.020 So what is all this doing the impacts of sea quest ration enemy. 45:30.020 --> 45:33.860 Turn original Ramsey to talk disliked that sector you'll stay 45:33.860 --> 45:37.130 on the previous two slides of because of this convergence of 45:37.130 --> 45:40.620 the okish or false Farber. Great. If you will the sheer. By now 45:40.620 --> 45:42.530 here for to the years policy quest ration. 45:43.060 --> 45:45.580 Really we've had a touch everything within the department to 45:45.770 --> 45:48.770 survive fy thirteen of I can use that term at least the news 45:48.770 --> 45:51.950 by the german before from a new what they just are up our to 45:51.950 --> 45:54.580 wreck readiness operating account all the servers that had to 45:54.580 --> 45:58.820 take a different actions over time in quite frankly of more actions 45:58.820 --> 46:01.850 maybe on the horizon but in terms of tangible numbers and I'm 46:01.850 --> 46:04.530 trivia folks to follow school give even more detail but. 46:05.170 --> 46:08.710 Any growing the army has already had to cancel seven of combat 46:08.710 --> 46:12.290 training center rotations and fiber day level exercises and they 46:12.290 --> 46:15.130 like all the services of ed to reduce training in meanings across 46:15.130 --> 46:18.390 the board of your force asia probably sign yesterday announced 46:18.390 --> 46:21.900 that there are twelve combat coded fighter and bomber squadrons 46:21.900 --> 46:24.590 of will be stood down aided those are stood down from flying 46:24.590 --> 46:27.920 this week and for more units once they were turn from overseas 46:27.920 --> 46:31.920 deployment and your forces already pockets also reducing curtailing 46:32.280 --> 46:35.670 that exercises about in a marine marine corps. I can a few months 46:35.670 --> 46:38.710 ago that the president and the sector announced that the U.S. 46:38.710 --> 46:39.680 if Truman battle group. 46:40.250 --> 46:42.390 I deployment to the Persian gulf will be delayed. 46:43.040 --> 46:45.970 In the last a week or so the navy hat the sector is made the 46:45.970 --> 46:49.550 decision to for tail the ceiling of the U.S. comfort part to 46:49.550 --> 46:53.230 its planned of crews to south common for their ships of cruises 46:53.230 --> 46:56.770 for also canceled and the navy has been forced to begin reducing 46:56.770 --> 47:00.210 flying hours and they've reduced our one of their carrier winds 47:00.280 --> 47:03.900 down eminem flying hours. They've also been impacted in the begin 47:03.900 --> 47:07.210 to reduce steaming days and flying hours across the navy marine 47:07.210 --> 47:09.090 corps when you that all this up. 47:09.640 --> 47:12.440 To be very candid what we've had to do beginning a few months 47:12.440 --> 47:15.410 ago is to start to burn readiness as a term invention we're not 47:15.440 --> 47:18.650 adding readiness for maintaining readiness of we're burning reps. 47:19.740 --> 47:22.790 Okay next slide. So this is a good sent way whips happening in 47:22.790 --> 47:25.510 thirteen years Renee influence fourteen and I'll come back to 47:25.510 --> 47:28.720 over let me turn the fiscal fourteen the broad theme of this 47:28.720 --> 47:32.040 budget is are we want implement and deepen the program alignment 47:32.040 --> 47:35.220 to this this defense strategy that the president announced a 47:35.220 --> 47:38.820 little more than year gone generate two thousand and twelve over recognize. 47:38.820 --> 47:43.020 So we're% in this budget any purity of great uncertainty facts live. 47:43.510 --> 47:46.420 Sources budget try to accomplish an fourteen we wanna continue 47:46.420 --> 47:49.530 et to act as good stewards of the taxpayer dollars. 47:50.150 --> 47:53.670 We one as I said implementing deepen our program alignment to 47:53.670 --> 47:56.670 strategic guidance carrying out the things we should be for make 47:56.670 --> 48:00.560 sure that we're doing and falling we seek a ready for shy user. 48:00.560 --> 48:03.660 We're advisably have a because I don't think we can say we're 48:03.660 --> 48:06.470 gonna maintain it given what's going on and thirteen but we seek 48:06.470 --> 48:10.120 it we rely people remain central there's a budget all we understand 48:10.120 --> 48:13.240 sequestration will affect that to and finally we need to fully 48:13.240 --> 48:17.030 fund a responsible drawdown in Afghanistan. I my brother's examples 48:17.030 --> 48:19.700 of these we've afford to you get contra with your neck slightly 48:19.700 --> 48:21.630 gonna suffer through couple a number slides. 48:22.170 --> 48:25.280 So bear with me these are little more complicated than usual. 48:26.000 --> 48:29.960 Am this is show shirt two thousand a defense budget up to twenty 48:29.960 --> 48:33.110 eighteen the fiscal fourteen three team projections or consist 48:33.110 --> 48:36.410 of the president's budget that star with them base budget. 48:36.410 --> 48:39.370 That's the dark blue large barge for the bottom. 48:39.950 --> 48:43.160 Present esther five and twenty six point six billion in budget 48:43.160 --> 48:44.620 authority five twenty seven. 48:45.500 --> 48:49.490 And and that's about eight% higher than what we're executing 48:49.490 --> 48:52.330 in thirteen for ninety three after adjustment for inflation and 48:52.330 --> 48:55.290 that increases almost entirely due to. 48:55.810 --> 49:00.040 The reduction and thirteen do to see quest ration in the years 49:00.040 --> 49:03.760 beyond fourteen that about two% a year roughly enough to keep 49:03.760 --> 49:04.830 pace with inflation. 49:05.500 --> 49:08.720 Now on midi libya us off loading answered and you are your the 49:08.720 --> 49:12.510 secretary Carmen a and the fiscal fourteen number of does not 49:12.510 --> 49:15.750 take into account. What could be a fifty two billion dollar reduction. 49:15.750 --> 49:19.250 If the budget control act remains unchanged the president just 49:19.250 --> 49:22.590 a few minutes ago has submitted a budget that that calls Farouk 49:22.630 --> 49:25.590 deficit reduction. One point eight trillion over the ten year 49:25.590 --> 49:29.690 period more than enough to satisfy the requirements of the budget 49:29.690 --> 49:33.700 control act and would allow the converse to D trigger see quest ration. 49:34.570 --> 49:38.660 Flamingo or to the that the or call portion of the budget and 49:38.660 --> 49:41.820 and that's the light blue bars at the top and here there's a 49:41.820 --> 49:44.830 simple story about fiscal fourteen or call budget. We don't have 49:44.830 --> 49:45.350 one yet. 49:45.930 --> 49:48.810 The president in order to give is commanders time to make the 49:48.810 --> 49:52.020 best judgments about the levels of the drawdown. I was appropriate 49:52.020 --> 49:55.430 in Afghanistan did not announce the force level decisions until 49:55.430 --> 49:58.180 mid figure we're and even then only through favorite two thousand 49:58.180 --> 50:01.500 and fourteen to we're now meet some pricing assumptions at all 50:01.500 --> 50:04.330 discuss later we're working hard and a no go budget and I hope 50:04.330 --> 50:06.700 we'll have it up to converse show within a month. 50:07.390 --> 50:11.840 Next line just a little more detail any basic point on their 50:11.840 --> 50:14.820 comparing fourteen of the pay-outs five twenty six point six 50:14.820 --> 50:18.360 and the right hand column as you can see and I showed you the 50:18.360 --> 50:22.020 dollars by appropriation compared of their request their almost 50:22.020 --> 50:26.210 unchanged at the total level and really and almost every Appropriations 50:26.210 --> 50:29.620 budgets pretty much the same as the thirteen request. It's seven 50:29.620 --> 50:33.310 and nine% higher than war actually executing in thirteen after 50:33.310 --> 50:37.320 the just and for sequestration and most of that is due to the 50:37.320 --> 50:40.140 cuts and thirteen associated with sequestration. 50:40.870 --> 50:43.800 So what we do or that five hundred and twenty six point six billion 50:43.800 --> 50:44.350 next line. 50:45.350 --> 50:48.760 We Arce we're trying to act continue to act as good stewards 50:48.760 --> 50:52.300 of taxpayers' dollars know we need to stretch our dollars for 50:52.300 --> 50:55.710 a country and a country that is facing the economic problems 50:55.710 --> 50:59.440 that we're facing here also I'll give you some selected initiatives 50:59.440 --> 51:02.180 or many others at up to about thirty four billion savings in 51:02.180 --> 51:03.760 two thousand and fourteen for eating. 51:04.340 --> 51:07.120 From the need to consolidate infrastructure and the department 51:07.120 --> 51:10.470 of defense the only effective way to do that is to brace rely 51:10.470 --> 51:13.660 on in enclosure we will last the conversation for a brackley 51:13.660 --> 51:15.020 round in twenty fifteen. 51:15.540 --> 51:18.980 In the we're pattering that around after the ninety three ninety 51:18.980 --> 51:22.260 five rounds we can identifies appropriate to identify specific 51:22.260 --> 51:26.140 basis talas process. And has been completed but we're pattering 51:26.140 --> 51:29.500 pattern mean yet after the ninety three ninety five rounds and 51:29.500 --> 51:32.770 we have entered money to the out years of this budget in fiscal 51:32.770 --> 51:37.150 sixteen seventeen eighteen to pay the cost of brek. If we are 51:37.150 --> 51:40.160 studying restructure the healthcare system which has some significant 51:40.160 --> 51:44.330 under utilisation and those first two items and others will allow 51:44.330 --> 51:47.950 us to restructure civilian workforce and achieve some reductions 51:47.950 --> 51:52.340 five six% in our civilian workforce we've had some success for 51:52.340 --> 51:56.320 continue to work hard to control healthcare costs and and never 51:56.610 --> 51:59.170 we're working on that as part of are selected initiatives. 51:59.540 --> 52:03.180 We are making some or changes in a missile defense program at 52:03.180 --> 52:07.040 Md we were all of terminate the precision tracking satellite 52:07.040 --> 52:13.250 system and favor of some additional research on and On intercept 52:13.250 --> 52:16.380 are capability have and will restructure the ascend three to 52:16.380 --> 52:20.950 be missile system and in favor of of some money spent on work 52:20.950 --> 52:23.370 in improvements and we're also using some of the funds from that 52:23.370 --> 52:28.440 restructured to pay for a and increases in the ground based intercept 52:28.440 --> 52:31.870 are so we're announced recently so a number of initiatives for 52:31.870 --> 52:34.490 also working a slow the growth and military compensation and 52:34.490 --> 52:37.010 ammunition Ramsey. If you just forever initiatives their. 52:37.820 --> 52:41.220 Yes sir thank you very much the the military compensation pay 52:41.220 --> 52:44.300 package that the secretary of already alluded to just gonna say 52:44.300 --> 52:47.160 that the joint chiefs of staff last fall fleet as a department 52:47.160 --> 52:51.330 put this budget together had many deliberations on military pay compensation. 52:51.330 --> 52:53.870 Of course the growth rates nigeria or orwell. 52:54.500 --> 52:57.270 Well-publicised but certainly as we looked across the balance 52:57.270 --> 53:00.780 force look at modernization and readiness recruiting retention 53:00.780 --> 53:03.340 in training of the best military force in the world we had a 53:03.340 --> 53:06.560 look at paying compensation. So what we're very comfortable with 53:06.560 --> 53:10.070 the joint chiefs of staff level with a one% pay raise to military 53:10.070 --> 53:13.640 members and their also some a reason missions of an track your 53:13.640 --> 53:16.800 changes that will propose clashes where we made a lot of changes 53:16.800 --> 53:20.020 to their proposals that we think will get at some of the issues that. 53:20.580 --> 53:23.090 They came about with a enactment some of those changes some we 53:23.090 --> 53:24.040 got and some we cannot. 53:25.210 --> 53:28.490 We have a process to implement have our past initiatives and 53:28.490 --> 53:31.400 will will ply that same process year the services that process 53:31.400 --> 53:35.550 in place. I come share a year earlier re you twice a year a power 53:35.550 --> 53:38.600 do when we're slough on ensemble for the most part we are moving 53:38.600 --> 53:41.530 to implement these and will continue to do so and our mention 53:41.530 --> 53:44.910 one close to my heart which is honored efforts and we are making 53:44.910 --> 53:47.460 a lot of progress to achieve our global financial statements 53:47.460 --> 53:51.910 in the department of defense is being harmed by the budget chaos 53:52.170 --> 53:55.690 that we're experiencing right now and will work an army daryn. 53:55.690 --> 54:00.010 I'm goal of order ready of budget resource statements by the 54:00.010 --> 54:01.440 end of twenty fourteen next line. 54:02.420 --> 54:05.360 Will implementing the burn program alignment in the strategies 54:05.360 --> 54:08.200 that means a smaller leaner forces drawdown aground Fortress 54:08.200 --> 54:10.900 continues by the end of fourteen will be two thirds of the weight 54:10.900 --> 54:14.390 work target for the ninety thousand and strengthen the army in 54:14.390 --> 54:16.750 the hundred and eighty two thousand and the marine corps. 54:17.390 --> 54:20.560 The covers turn down some ship are jama Sri propose last year 54:20.560 --> 54:23.100 and provided money to operate them to twenty fourteen will do 54:23.100 --> 54:26.550 that of course but then we will re proposals retirement and we 54:26.550 --> 54:29.510 did reach a green with the congress on aircraft retirement and 54:29.510 --> 54:30.460 will pursue those. 54:31.430 --> 54:34.670 Despite the budgetary problems. We're working to re balance toward 54:34.670 --> 54:37.610 the asia pacific region and I'll just mention a couple things 54:37.610 --> 54:41.650 for most people will forces former sen F twenty twos a but to 54:41.650 --> 54:44.540 could be in on okinawa by twenty twenty will our sixty% of our 54:44.540 --> 54:49.020 navy forces stationed in the pacific region. We're working to 54:49.020 --> 54:52.390 expand access and corporation for example are occasional presence 54:52.520 --> 54:53.390 in australia. 54:54.030 --> 54:55.650 The ships and in singapore. 54:56.300 --> 54:59.730 And the middle east. We have a strong presence as your well aware 54:59.730 --> 55:03.170 aimed at both pressuring iran and stabilizing our presence their 55:03.170 --> 55:03.670 next line. 55:04.420 --> 55:07.750 We're going to protect and prioritize some key investments of 55:07.750 --> 55:10.470 what I'm going to hold off because the next let our the mission 55:10.470 --> 55:11.270 numbers their. 55:12.030 --> 55:15.600 Innovative partnerships we know we will fight alone easy to build 55:15.600 --> 55:19.850 allies continue to do their that all times we have a authority 55:19.850 --> 55:23.270 for something called the global security a contingency fund the 55:23.270 --> 55:26.770 joint fun with the state department to it allies and that for 55:26.770 --> 55:30.080 the first time in fiscal fourteen. We will ask dedicated funding 55:30.260 --> 55:34.270 for the J S. Yeah for seventy five million overall working the 55:34.270 --> 55:37.080 confront and defeat aggressions and then that mark some up of 55:37.080 --> 55:37.800 this live. 55:38.600 --> 55:42.190 We're we look to some very poor on strategic choices as we move 55:42.190 --> 55:44.570 from fy thirteen in a fourteens we've got this budget. 55:45.120 --> 55:48.360 And the key issue your was protecting in investing in new capabilities 55:48.360 --> 55:51.010 and technology that we thought was innovative and include some 55:51.010 --> 55:53.990 work work for their partners and the bottom line is this budget 55:54.040 --> 55:57.130 maintains the world's finest military force notwithstanding some 55:57.130 --> 55:59.870 of the readiness issues. We talked about earlier but some working 55:59.870 --> 56:02.600 investment areas as we looked around the world are certainly 56:02.600 --> 56:05.490 and missile defense those changes have already been announced 56:05.490 --> 56:09.660 for the secretary for investing in a a preached or carriers offer 56:09.660 --> 56:13.000 broad portfolio involving long range strike the new tanker range 56:13.000 --> 56:17.180 one track the joint strike fighter were buying a more and better 56:17.180 --> 56:20.790 precision guided munitions and we invest in one extra Virginia 56:20.790 --> 56:22.580 class submarine. The fy fourteen budget. 56:23.360 --> 56:26.030 That's life because so march mentioned if you are these will 56:26.030 --> 56:29.340 increase cyber from three point nine billion the four point seven 56:29.340 --> 56:33.380 consistent with our concerns and focus on area for mention the 56:33.380 --> 56:37.000 second their regina class over a wide twenty one EA their eighteen 56:37.000 --> 56:38.920 G growl or aircraft as poor. 56:39.500 --> 56:43.830 And the access efforts and of radio of other increases that you 56:43.830 --> 56:45.520 can see on the slide next live. 56:46.180 --> 56:49.330 The seeker ready for some money ask gen around with the threat 56:49.330 --> 56:50.740 of our situation here. 56:51.790 --> 56:55.400 That's earlier the last the all over twelve years has to the 56:55.400 --> 56:58.760 for the focus of the forces would can in certain seen counterterrorism 56:59.230 --> 57:02.440 as we begin to come out of Afghanistan we've grown the surge 57:02.440 --> 57:05.630 down we're looking it getting back to of thirst differs any of 57:05.680 --> 57:08.580 key phrase off the slide its full spectrum operations across 57:08.580 --> 57:12.170 the services. So depending on how we end up and fy thirteen and 57:12.170 --> 57:16.150 readiness of the fy fourteen budgets are we find so the shift 57:16.150 --> 57:19.040 back to for spectrum operations and training the marines are 57:19.040 --> 57:21.940 shipping or more from a land back to their out there specially 57:21.940 --> 57:25.510 which is amphibious expeditionary warfare that we're investing 57:25.510 --> 57:29.330 in steaming and flying hours and special operations command is 57:29.330 --> 57:33.180 the beginning to come out of their aware of the re shifting from 57:33.440 --> 57:37.080 Afghanistan to more than global force and a showmanship thing 57:37.080 --> 57:38.950 some other funds from oak and one of the base budget. 57:39.480 --> 57:41.810 I just one appointed says of the bottom and this is true that 57:41.810 --> 57:45.130 the fy fourteen budget. This emitted is not a get well plan for 57:45.130 --> 57:47.930 the readiness of the role akhanaten fy thirteen the challenges. 57:48.600 --> 57:49.030 They slide. 57:49.560 --> 57:53.010 People or remain central family support programs funded roast 57:53.010 --> 57:57.850 local basically a level a wounded warrior programs fully funding. 57:57.850 --> 58:02.000 The healthcare system here in the and see quest ration is rearing 58:02.000 --> 58:02.920 its ugly head. 58:03.550 --> 58:06.640 Our civilians our vinegar. Nice devastated by sea quest rationed 58:06.640 --> 58:10.050 every in that going through with furloughs and military training 58:10.050 --> 58:12.670 and military personnel also affected these men and women join 58:12.670 --> 58:14.710 the training and re tell making aunts. 58:15.320 --> 58:18.950 I think early someone in Kiev to of that it will adversely affect 58:18.950 --> 58:20.380 them or else will mudslide. 58:20.920 --> 58:24.050 So this is a pretty picture had a makes point and maybe for now 58:24.080 --> 58:27.830 on changes in the base budget with your guard appropriation and 58:27.830 --> 58:31.170 that a lot by service either air force up just a little bit a 58:31.200 --> 58:34.760 me that a army down just a little bit thanks live. 58:36.120 --> 58:39.140 We see to fully fun. Responsible drawdown in Afghanistan as a 58:39.140 --> 58:42.470 tory we don't yet have an or call budget and we have decided 58:42.470 --> 58:46.680 on of pricing assumptions of the thirty four thousand troops 58:46.680 --> 58:50.150 in Afghanistan by the end of that were fourteen that is the president's 58:50.150 --> 58:54.590 decision in for pricing only rules and thirty four thousand continues 58:54.720 --> 58:57.950 through september twenty fourteen at decision. There is yet to 58:57.950 --> 59:01.870 be made and will work and hard on a budget to have an he'll to 59:01.870 --> 59:03.860 deal and about a month next live. 59:04.530 --> 59:07.210 So I finish up a little bit a discretion of uncertainty new get 59:07.210 --> 59:08.940 so that were the sector and the chairman. 59:09.530 --> 59:12.610 Their son and twenty fourteen for sure his the budget control 59:12.610 --> 59:15.270 act is not change it would take fifty two billion dollars over 59:15.270 --> 59:19.710 the numbers are chain of propos for for the mentioned here the 59:19.710 --> 59:23.810 budget the president's budget as i've said proposes deficit targets 59:23.900 --> 59:27.990 a that more than meet the d.c. area and that will allow thick 59:27.990 --> 59:31.330 understood the trigger sequester asian and we know the ball thousands 59:31.330 --> 59:34.460 of the budget resolutions basement the same model as the presence 59:34.460 --> 59:38.420 but for twenty fourteen yunan more uncertainty be on twenty fourteen 59:38.700 --> 59:41.930 the see a if it's left unchanged could year by year and up to 59:41.930 --> 59:45.230 talk us a five hundred billion over ten years now the center 59:45.230 --> 59:48.500 budge are resolution. Yeah use does cut little ball the presence budget. 59:48.730 --> 59:51.430 But the house resolutions actually little about the presence 59:51.430 --> 59:55.160 request to in the art your so it looks to us like you've converse 59:55.160 --> 59:58.500 that does region the you'll have that we will see numbers not 59:58.500 --> 01:00:01.010 that different than what we're proposing at least we would hope 01:00:01.340 --> 01:00:04.030 these remains to be seen of that will happen. We know there's 01:00:04.030 --> 01:00:07.420 uncertainty next slide and I think the secretary already described 01:00:07.420 --> 01:00:10.650 the strategic chores as an manager review steamer as we call 01:00:10.650 --> 01:00:15.710 in Pentagon use of and here's order industry too Carter's conducting 01:00:15.710 --> 01:00:18.840 and along with gentle them see it will start with the twenty 01:00:18.840 --> 01:00:21.380 twelve guidance that is the starting point and we will look at 01:00:21.380 --> 01:00:25.500 choices on how we implement that in light of of areas of budget 01:00:25.620 --> 01:00:29.940 a outcomes and we hope to have results by me through first every 01:00:29.940 --> 01:00:32.940 result sticking a my the you'll be sometime after that of the 01:00:32.940 --> 01:00:35.080 for those results were more widely available. 01:00:35.590 --> 01:00:36.040 That's side. 01:00:36.590 --> 01:00:38.950 So five and and twenty seven million implementing the from the 01:00:38.950 --> 01:00:42.310 commitment of the strategy a lot of uncertainty associated with 01:00:42.310 --> 01:00:46.200 six frustration and the top-line and last slide if you have an 01:00:46.200 --> 01:00:50.420 trouble sleeping dial for for this each year ago or website down 01:00:50.420 --> 01:00:52.710 on with their up there yet but they'll be all kinds of stuff 01:00:52.710 --> 01:00:56.070 the famous dash ones that will surely which is. 01:00:56.660 --> 01:01:01.720 Camp. Are a What is that were excited about grower give if i've 01:01:01.720 --> 01:01:06.010 read here's whatever for the rest of was to begin filming department from. 01:01:06.900 --> 01:01:11.240 The a very quick. Good question on the human although spending 01:01:11.450 --> 01:01:14.070 costa that getting to have expected this year. 01:01:14.680 --> 01:01:17.830 And they a couple of references to test the vision phosphorus 01:01:17.830 --> 01:01:22.410 levels of the because are up the You off of the called yes indeed 01:01:22.410 --> 01:01:26.740 you say for going higher than you and just the And well it did 01:01:26.740 --> 01:01:29.820 that toll is about seven to ten and arrange spends right quite. 01:01:29.820 --> 01:01:33.170 Sure how much the army will need that sluggish opening energy 01:01:33.170 --> 01:01:36.690 locks their closure and sluggish opening it is probably a billion 01:01:36.690 --> 01:01:40.320 have to to we've that the rest of it is unexpectedly high operating 01:01:40.320 --> 01:01:43.940 tempo on across all the services so that part democrat. 01:01:45.000 --> 01:01:46.350 For the tolls for ships. 01:01:47.270 --> 01:01:51.020 To the secretary mission is remarks that the department will 01:01:51.050 --> 01:01:54.480 reduce the size the civilian workforce completing is as of how 01:01:54.510 --> 01:01:58.050 many of roughly how many sleepers now you're looking air force 01:01:58.050 --> 01:02:01.160 for it or even whether not these are the reduced are attrition 01:02:01.160 --> 01:02:05.400 layoffs and they'll fall on the process. You are entering that can. 01:02:06.280 --> 01:02:09.920 Well we're looking for about a five to six% cut in fiscal thirteen 01:02:09.920 --> 01:02:13.730 the eighteen and about seven and fifty thousand retire civilians 01:02:13.730 --> 01:02:16.740 shows probably for your fifty thousand and a lot defiantly is 01:02:16.740 --> 01:02:19.610 in the our years because it's tied to bracket. 01:02:20.410 --> 01:02:23.510 Which will allow us to consolidate infrastructure and one in 01:02:23.510 --> 01:02:28.860 a needs for civilians also tied to the to you restructuring a 01:02:28.860 --> 01:02:32.310 military healthcare that the consolidates over facilities and 01:02:32.310 --> 01:02:35.820 of drawdowns in Depo maintenance as we finish the reset activities. 01:02:36.420 --> 01:02:41.060 I would hope that given the time to prepare a we could do this 01:02:41.130 --> 01:02:44.840 through attrition. Of what we are far enough along to really 01:02:44.840 --> 01:02:47.700 know for sure a do is to how we do it..