Funding US Military Operations Since 2001

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Funding US Military Operations Since 2001 CHILDREN AND FAMILIES The RAND Corporation is a nonprofit institution that helps improve policy and EDUCATION AND THE ARTS decisionmaking through research and analysis. ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE This electronic document was made available from www.rand.org as a public service INFRASTRUCTURE AND of the RAND Corporation. TRANSPORTATION INTERNATIONAL AFFAIRS LAW AND BUSINESS Skip all front matter: Jump to Page 16 NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY Support RAND SCIENCE AND TECHNOLOGY Browse Reports & Bookstore TERRORISM AND Make a charitable contribution HOMELAND SECURITY For More Information Visit RAND at www.rand.org Explore the Pardee RAND Graduate School View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non- commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This product is part of the Pardee RAND Graduate School (PRGS) dissertation series. PRGS dissertations are produced by graduate fellows of the Pardee RAND Graduate School, the world’s leading producer of Ph.D.’s in policy analysis. The dissertation has been supervised, reviewed, and approved by the graduate fellow’s faculty committee. Paying for War Funding U.S. Military Operations Since 2001 Aaron L. Martin This document was submitted as a dissertation in August 2011 in partial fulfillment of the requirements of the doctoral degree in public policy analysis at the Pardee RAND Graduate School. The faculty committee that supervised and approved the dissertation consisted of Ellen Pint (Chair), Jim Quinlivan, and Cindy Williams. PARDEE RAND GRADUATE SCHOOL The Pardee RAND Graduate School dissertation series reproduces dissertations that have been approved by the student’s dissertation committee. The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. Published 2011 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] - iii - PREFACE The challenge of budgeting for military operations was not a new one that the U.S. faced in the early 2000s. Since World War II, the U.S. has conducted major multiyear military operations in Korea and Vietnam. Yet the methods used to budget for operations since 2001 were very different than during these previous operations. In prior operations, the wartime budgets were largely merged or subsumed within the annual defense budgets within two or three years. However, an alternate wartime budget, either in the form of supplemental appropriations or a separate title in the annual appropriations bill, has been used throughout recent operations in Iraq and Afghanistan. This dissertation documents the findings and recommendations from an analysis of the outcomes from using separate wartime budgets during prolonged operations. The outcomes explored within the dissertation range from the changes in budgetary influence that the executive and legislative branches have in certain situations to identifying budgetary challenges that will likely emerge as operations conclude. This dissertation should be of interest to those involved with or interested in the federal and defense budgeting process and others interested in the military services’ planning and force development. - v - CONTENTS Preface..............................................................iii Figures..............................................................vii Tables................................................................ix Abstract..............................................................xi Acknowledgments.....................................................xiii Acronyms and Abbreviations............................................xv 1. Introduction.......................................................1 Three Phases in Recent Wartime Budgets...........................2 Dissertation Structure...........................................8 2. Predicting Outcomes of Wartime Supplemental Appropriations........10 Budget Theory and Interactions..................................10 A Model of Wartime Supplemental Appropriations..................18 Predicted Outcomes from the Theoretical Model...................23 3. Analysis of Wartime Supplemental Requests and Appropriations.......26 DOD Requests Include Items Normally Found in the Base Budget....27 Military Personnel..............................................30 Operation and Maintenance.......................................35 Investments.....................................................39 Supplementals Were Used to Pass Additional Legislation..........43 Conclusions.....................................................47 4. How Supplemental Appropriations Impacted Base Personnel Policy.....49 Expansion of the Army and Marine Corps..........................49 Incremental Deployment Pays and Allowances......................53 Life Insurance, Death Gratuities, and Traumatic Injury Coverage ...................................................57 Conclusions.....................................................60 5. Wartime Budgets Influence Operation and Maintenance Spending.......63 TRICARE Reserve Select..........................................63 Resource Migrations.............................................67 Conclusions.....................................................76 6. Wartime Acquisition Impacts Force Structures and Operating Costs...80 Vehicle Armoring................................................80 Tactical Radios.................................................92 Conclusions.....................................................96 7. Army MRAP Retention................................................98 Identifying Potential Roles for MRAPs...........................99 MRAPs in Future Army Fleets....................................107 Recent Army Plans for MRAP Retention...........................119 Comparing MRAP Retention Options...............................121 Retaining MRAPs for the Future.................................124 8. Buying Military Intervention in the Future........................127 - vi - Budgetary Challenges Emerging during Recent Military Operations ................................................127 Budgeting for Future Protracted Operations.....................140 Other Policy Options To Influence Wartime Budgeting............145 Conclusions....................................................149 A. Wartime Requests and Appropriations..............................153 B. Interviews.......................................................163 C. Comparing Current and Future TWVs to MRAPs........................165 D. Allocating MRAPs..................................................171 MRAP Allocation during Operations..............................172 E. Modeling the Costs of MRAP Allocation.............................175 Bibliography.........................................................180 - vii - FIGURES 1.1. DOD Wartime Appropriations .......................................4 2.1. Frequency and Size of Supplemental Appropriations Since 1970 ....16 3.1. DOD Procurement Requests from 2004 through 2009 .................41 3.2. Congressional Additions to Supplemental Appropriations ..........44 4.1. Army and Marine Corps End Strength ..............................52 4.2. Monthly Rates for IDP and FSA since 1970 ........................56 5.1. Army and MC Annual Depot Maintenance Requests ...................70 5.2. Costs of Prepositioned Equipment ................................74 6.1. Up-Armored HMMWV Requirements, Production Output, and Redistribution from August 2003 through September 2004 .......81 6.2. Army Light Tactical Wheeled Vehicle Fleet Through 2014 ..........83 7.1. MRAP Retention Options .........................................108 7.2. Capacity for Equipping Deployed BCTs with MRAPs Based on the Number of MRAPs in an Individual BCT’s MTOE .................113 7.3. Alternative Equipment Sets for an Army Brigade .................116 7.4. Fleet Management Techniques ....................................118 A.1. Wartime Requests by Military Service ...........................155 A.2. Wartime Appropriations by Military Service .....................156 A.3. Army Wartime Requests ..........................................157 A.4. Army Wartime Appropriations ....................................158 A.5. Navy and Marine Corps Wartime Requests .........................159 A.6. Navy and Marine
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