http://today.reuters.com/news/articlenews.aspx?type=politicsNews&storyid=2006-10-28T015857Z_01_N27194804_RTRUKOC_0_US-ARMS-USA-BUDGET.xml&src=rss

Pentagon expands war-funding push
Fri Oct 27, 2006 8:59 PM ET

By Jim Wolf

WASHINGTON (Reuters) - The U.S. Defense Department is expanding the 
scope of what it deems war-related spending, a move that would make it 
easier to meet growing Army and other service requests for more funding 
overall.

Deputy Defense Secretary Gordon England, in a memorandum dated 
Wednesday, told military chiefs to base their requests for funding 
outside the regular defense budget on the "longer war against terror."

Such requests should be "not strictly limited" to Iraq, Afghanistan and 
operations from Philippines to Djibouti sparked by the September 11 
attacks, England wrote. He said they should be sent to the defense 
secretary's office by November 1.

The memorandum was made available Friday by InsideDefense.com, an online 
news service. The memo did not define the "longer war" -- a term that 
could open the door to more spending on everything from intelligence to 
the pricey process of making Army brigades more readily deployable.

Included were fix-up costs for war-worn equipment or "replacement to 
newer models when existing equipment is no longer available or repair 
economically feasible," England said.

Also included were "costs to accelerate specific force capability 
necessary to prosecute the war." England said the requests must be for 
items for which funds can be "obligated" in fiscal 2007, which began on 
October 1.

"Funds that cannot be obligated in FY '07 will be requested in a 
following supplemental," he wrote.

With passage of the fiscal 2006 supplemental spending bill, war-related 
appropriations would total about $436.8 billion for Iraq, Afghanistan 
and enhanced security at military bases, the nonpartisan Congressional 
Research Service said in a September 22 report.

All this is in addition to the more than $500 billion sought by 
President Bush in his baseline fiscal 2007 national defense request.

The Pentagon's so-called supplemental requests are not subject to 
restrictive caps placed by Congress on total federal discretionary 
spending -- the part outside of mandatory entitlements.

As a result, they may be used to shift certain costs from the annual 
baseline defense budget. In addition, supplemental appropriation 
requests do not require the kind of detailed budget justification 
material that Congress expects with regular Defense Department funding 
requests.

"What this memo appears to do is recognize the services' concerns that 
they need supplementals to help them cope with the shortfalls in their 
programs generated by the longer war on terror," said Dov Zakheim, the 
Pentagon's chief financial officer from 2001 to April 2004.

Steven Kosiak, an expert on U.S. military spending at the Center for 
Strategic and Budgetary Assessments, said measures to pay for ongoing 
military operations were widely considered "must-pay bills, must-pass 
legislation" in Congress.

While Defense Department long-term budgets were projected out six years 
at a time each year when sent to lawmakers, supplemental war costs do 
not show up in any long-term spending plan, he said.

Defense Secretary Donald Rumsfeld, at a regular news briefing on 
Thursday, said it was "very difficult to know what ought to go in the 
budget and what ought to go in the supplemental."

"We've been working very hard to get 'reset' money for the Army," 
Rumsfeld said, using Pentagon jargon for funds to replace or refurbish 
combat-damaged gear. "The Army needs it. So does the Marine Corps. So do 
some of the other services that have reset problems."

The Army has been pushing for a $25 billion increase to its fiscal 2008 
budget, but the Defense Department so far has offered only $7 billion, 
according to another England memo published by InsideDefense.com.

+++


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