Rising Cost
Of Iraq War
May Reignite
Public Debate
By YOCHI J. DREAZEN and JOHN D. MCKINNON
Wall Street Journal
February 4, 2008; Page A1

WASHINGTON -- The cost of U.S. military operations in Iraq is rising
rapidly, and could reignite the national debate about the war, which has
taken a back seat to the economy as an issue for most voters this election
year.

Today, the White House will propose a federal budget that for the first time
tops $3 trillion. The plan is expected to include a record sum for the
Pentagon and an additional $70 billion in funding for the wars in Iraq and
Afghanistan, while essentially freezing discretionary spending in areas
other than national security, including most domestic programs.

The sharp contrast between President Bush's defense and domestic-spending
goals could give Democrats a potent political weapon as the economy
continues to deteriorate. But with the Democratic-controlled Congress likely
to scrap most of Mr. Bush's spending plans, his funding proposal for Iraq
may be one of the budget's most enduring elements.

Mr. Bush's budget calls for about $515 billion to be allocated to the
Defense Department for the fiscal year that starts Oct. 1, according to
people familiar with the matter. If passed by Congress, that would be the
largest military budget -- adjusted for inflation -- since World War II.

Pending Requests

The budget also includes a separate request of $70 billion for Iraq and
Afghanistan for the first quarter of fiscal 2009 alone. For this fiscal
year, Congress has yet to approve additional spending of about $102 billion
the White House has requested for the two conflicts.

Boosted in part by rising fuel prices and the expense of repairing or
replacing vehicles worn down by the long war, U.S. spending on Iraq has
doubled in the past three years.

Last year's buildup of U.S. troops -- known as the "surge" -- and the
military's growing use of expensive heavy munitions to roust Iraqi
insurgents also have contributed to the cost increase. According to a recent
Congressional Research Service report, the average monthly cost of the
conflict -- by CRS's measure -- hit $10.3 billion in the year ended Sept.
30, 2007, up from $4.4 billion in fiscal 2004.

$1 Trillion Mark

With Congress having already approved $691 billion in war spending since
2001, the cost of the Iraq and Afghanistan wars combined could rise to just
under $900 billion by next spring and could near the $1 trillion mark by the
end of 2009.

Pentagon officials acknowledge that war costs have risen sharply, but they
say the added spending is justified not only by higher fuel and food prices
but also by the need to provide better protective gear and other equipment
to U.S. troops. They also note that the U.S. has begun spending tens of
millions of dollars a year on salaries for what the Pentagon calls
"Concerned Local Citizens," the mainly Sunni fighters who now function as
neighborhood-watch organizations in many parts of Iraq.

On the domestic front, the president's new budget is expected to keep a
tight lid on costs that aren't security-related. One big target for savings
would be Medicare, the health-care program for the elderly. But the budget
for homeland security is expected to rise sharply again, with much of the
money going to increasing immigration enforcement and border security.

Today's announcement is also expected to project deficits in the range of
$400 billion for both 2008 and 2009, thanks to a big economic-stimulus plan
Congress is expected to approve. If war costs were fully included, the 2009
deficit would be even higher.

Congress has been unable to limit war funding in the past. Last year,
several measures aimed at changing administration policy failed to make it
through both chambers, damping calls for change. The progress the U.S. troop
surge has made in tamping down violence in parts of Iraq also has helped to
dislodge the war from the top of the political agenda.

But the issue of war costs is gaining traction. Democrats believe they have
a stronger hand now amid fears of a recession. Polling and focus groups
commissioned by several unions and activist groups last year suggested that
Democrats should focus on the war's impact on domestic needs as they gird
for a budget battle with Mr. Bush. According to a memo describing the
results, the best way for the Democrats to frame their message would be to
criticize Mr. Bush for vetoing "important priorities at home after spending
half a trillion dollars in Iraq."

A big test of this approach could come as soon as this spring, when Congress
begins debating the additional Iraq war funding the Bush administration has
requested for this year.

Democrats' Message

Kansas Gov. Kathleen Sebelius sought to make those points last Monday in the
Democrats' official response to President Bush's State of the Union address.
She complained that the wars in Iraq and Afghanistan "have cost us dearly --
in lives lost; in thousands of wounded warriors whose futures may never be
the same; [and] in challenges not met here at home because our resources
were committed elsewhere."

On the campaign trail, Democrats have hit that message harder, arguing that
urgent domestic needs -- from children's health care to expanded spending on
highways and other infrastructure -- are going unmet because of the high
costs of the two conflicts.

"We are spending $9 billion to $10 billion every month," Democratic
presidential hopeful Sen. Barack Obama said late last month during a debate
in South Carolina. "That's money that could be going right here in South
Carolina to lay broadband lines in rural communities, to put kids back to
school."

Several progressive groups and labor unions joined forces last fall to run
TV ads targeting lawmakers for voting against a Democratic-led effort to
expand health insurance for children. One ad sponsored by USAction said
"health care for 1.7 million kids costs the same as just one week in Iraq.
But Republicans in Congress" helped President Bush to block the program's
expansion.

White House officials believe they weathered Democrats' attacks over Mr.
Bush's veto of the expansion. Many voters, the White House believes, agreed
that the initiative represented an ill-advised, big-government-style
response to the country's health-care problems. They plan to maintain that
defense as Democrats broaden their arguments for more spending to include
infrastructure and social spending.

Senior military officials, meanwhile, want to see the Defense Department's
budget grow beyond what Mr. Bush has requested so far. Adm. Michael Mullen,
the chairman of the Joint Chiefs of Staff, says that total defense
spending -- for the Defense Department itself and the wars in Iraq and
Afghanistan -- should rise to 4% of gross domestic product a year. That's
equivalent to about $700 billion a year.

Replacing Equipment

Senior Pentagon officials say they need the extra money to pay for the
continuing costs of expanding the nation's active-duty military by tens of
thousands of troops and repairing or replacing the planes, helicopters,
tanks and armored vehicles consumed by the two wars.

Speaking to reporters Friday, Gen. James Conway, the commandant of the
Marine Corps, argued that a wartime defense budget of 4% of GDP would be
small compared with the ratios in previous conflicts. "We're fighting a war
on less than 4%," he said. "It was 9 during Korea, 13 for Vietnam, 35, 38
for World War II. We're making do with it, but...we do see some needs on the
horizon."

The 30,000 additional U.S. troops sent to Iraq last year as part of the
surge are expected to return to the U.S. by the end of the summer, bringing
the total U.S. troop presence back down to about 130,000.

Defense Secretary Robert Gates has talked in the past about trying to
withdraw an additional 30,000 troops by the end of the year to reduce the
strains on the military. Mr. Bush said this week that he may hold off on any
further troop reductions for fear of jeopardizing recent security gains in
Iraq.

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