Congressional Budget Office March 7, 2019 Overseas Contingency - - PowerPoint PPT Presentation

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Congressional Budget Office March 7, 2019 Overseas Contingency - - PowerPoint PPT Presentation

Congressional Budget Office March 7, 2019 Overseas Contingency Operations: Trends and Issues A Joint Seminar by the Congressional Research Service, the Congressional Budget Office, and the Government Accountability Office F. Matthew Woodward


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Congressional Budget Office

A Joint Seminar by the Congressional Research Service, the Congressional Budget Office, and the Government Accountability Office

March 7, 2019

  • F. Matthew Woodward

National Security Division

Overseas Contingency Operations: Trends and Issues

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1 CBO

The Congressional Budget Office

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2 CBO

CBO supports the Congressional budget process by providing the Congress with

  • bjective, nonpartisan, and timely analyses of legislative proposals and of

budgetary and economic issues.

CBO’s Role

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Historical Perspective on Funding for Overseas Contingency Operations (OCO)

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GWOT = Global War on Terrorism.

Base-Budget and Nonbase Funding for DoD, 1950 to 2019

In addition to its regular, bas ase- budget get request for funding, the Department of Defense (DoD) requests nonb nbas ase funds for unanticipated expenses. Before 2001, that practice was

  • limited. After 2001, OCO were

funded one year at a time with nonbase budgets.

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Nonbase Funding and Enduring Operations

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In the initial phases of a contingency operation, it can be difficult to predict costs. However, that changes over time:

  • The operating costs of a large deployed force become relatively predictable,

because it is difficult to rapidly change the force’s size once it is deployed, and

  • New patterns in the size and kinds of U.S. forces operating in a part of the

world begin to emerge. Enduring activities are the elements of contingency operations that have become routine. Their costs can be expected to change little from budget to budget.

Evolution of Contingency Operations

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Data for forces dedicated to in-theater support are not available for years before 2009.

Average Numbers of Operational Forces in Iraq and Afghanistan and In-Theater Support Forces, 2006 to 2019

Despite a sharp decrease in the number of operational forces, the number of in-theater support forces has changed little.

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Data on the cost of in-theater support are not available for years before 2013.

OCO Funding for Operations and In-Theater Support, 2006 to 2019

Funding for in-theater support has remained relatively constant since 2013 despite a decrease in funding for operational forces.

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In CBO’s estimation, from 2006 to 2018, more than $50 billion in OCO funding per year (in 2019 dollars), on average, has gone toward the costs of enduring activities rather than the temporary costs of overseas operations. DoD’s fiscal year 2019 budget request indicated that, beginning in 2019, the department planned to increase the base budget to include most of what it considered enduring funding in future years.

Funding for Enduring Activities

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Effects of Incorporating Enduring OCO Funding in the Base Budget

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  • a. DoD’s base budget plus CBO’s estimate of enduring OCO funding. Projected values are based on DoD’s 2019 Future Years Defense Program.

The Possible Effect of Moving Enduring OCO Funding Into DoD’s Base Budget

Including the projected costs of enduring activities in the base budget (as reported in the President’s 2019 budget request) would increase it by about $47 billion per year starting in 2020.

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  • a. The adjusted base budget includes DoD’s base budget plus contingency-related funding in the OCO budget starting in 2006. CBO could not identify such spending in earlier years

because DoD did not categorize OCO funding by function or mission until 2006. Projected values are based on DoD’s 2019 Future Years Defense Program.

How DoD’s Base-Budget Funding Would Look If It Included All OCO-Related Funding, 1950 to 2019

300 600 900 1950 1960 1970 1980 1990 2000 2010 2020 Total Budget Base Budget Adjusted Base Budgeta Billions of 2019 Dollars

Funding long-term, large-scale

  • perations in the OCO budget rather

than the base budget tends to understate the actual costs of implementing U.S. national security strategy and foreign policy. Furthermore, the practice of funding

  • verseas conflicts outside of the

base budget departs from historical norms. The adj djusted ba base bu budg dget in the figure is constructed to be more consistent with trends in DoD’s funding before 2001.