07 May 2009

Gates Shakes Up 'Unfunded' Budget Ritual, Demands First Look at Service Wish Lists

May 6, 2009 -- Defense Secretary Robert Gates has shaken up long-standing budget ritual that permits the service chiefs to present Congress with wish lists not vetted by the Pentagon or the White House.

On April 21, Rep. John McHugh (R-NY), ranking member of the House Armed Services Committee, asked the service chiefs and two combatant commanders to prepare lists of high-priority items not funded in the Defense Department's fiscal year 2010 budget request (DefenseAlert, April 22). The top brass have responded to similar requests each year since the practice began in the mid-1990s, asking for as much as $30 billion for aircraft, ships and trucks beyond what was included in the Pentagon's budget request.

Technically, the service chiefs do not request the items on their lists -- they simply identify their top funding priorities in the event Congress sees fit to increase the Pentagon's budget.

This year, however, Gates has asserted his prerogative, as Pentagon chief, to review any unfunded requirements lists the services might prepare before transmitting them to Congress.

“As you are aware, the existing statutory framework provides for members of the Joint Chiefs of Staff to make recommendations to the Congress 'after first informing the secretary of defense,'” Gates wrote in an April 30 memo to the service chiefs and combatant commanders.

“Accordingly, should you determine that there are FY-10 unfunded requirements that are responsive to the request from Congress, I expect you to first inform me of such a determination so that we can schedule the opportunity for you to brief me on the details,” the defense secretary wrote.

The size of the services' wish lists has grown significantly in recent years, peaking two years ago at $35 billion for FY-08. Last year, the top brass presented unfunded requirements for FY-09 that totaled more than $30 billion. The total for FY-06 was $13.6 billion, while in FY-07 the collective sum grew to $21.8 billion. In 2001, the combined unfunded requirements detailed by the chiefs amounted to just $7.7 billion.

Defense secretaries -- Gates included, during the past two budget requests -- have not previously sought to be involved in reviewing the requirements lists before they are submitted.

This move follows unprecedented steps Gates has taken this spring to impose new discipline on the Pentagon's budgeting process, requiring all involved in the revision of the FY-10 spending request to sign non-disclosure agreements. -- Jason Sherman