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1 v6 UNCLASSIFIED USMC Programs and Resources MCAA Brief LtGen Duane Thiessen Deputy Commandant, P&R
1v6 UNCLASSIFIED
USMC Programs and Resources
MCAA Brief
LtGen Duane ThiessenDeputy Commandant, P&R
2v6 UNCLASSIFIED
This is just an average year. It is not as good as last year and better than next....
3v6 UNCLASSIFIED
Federal Budget Historical TrendsIn the past 40 years, mandatory spending has grown…
…reducing discretionary spending to about 1/3 of outlays
1995
Discretionary M andatory Interest
1965
Discretionary M andatory Interest
1975
Discretionary M andatory Interest
1985
Discretionary M andatory Interest
2005
Discretionary M andatory Interest
2009
Discretionary M andatory Interest
4v6 UNCLASSIFIED
President’s Budget~$3.6 Trillion in FY2009
DoD19%Non-Defense
Discretionary17%
Social Security19%
Medicare12%
Medicaid7%
TARP7% Other Mandatory
19%
Troubled Asset Relief Program
5v6 UNCLASSIFIED
Army27%
DoN28%
Air Force28%
Defense Agencies /
Defense-Wide17%
DoD Budget
* Does not include supplemental appropriations
$513B in FY2009*
$147.4B
$85.5B$139.2B
$141.2B
6v6 UNCLASSIFIED
DoN Budget as a Share of DoD
Navy 73%
BISOG 6%
Marine Corps17%
Indirect 4%
DoN28%
USA27%
USAF28%
Other17%
• BISOG equals direct aviation procurement & flying hour program• Marine Corps + BISOG $ = 6% of DoD TOA
7v6 UNCLASSIFIED
There is an optimistic, idealistic, euphoric vision where unicorns no longer poop in the streets....unfortunately, there is also reality.
8v6 UNCLASSIFIED
Source: Congressional Budget Office“The Long-Term Budget Outlook”, June 2009
The Spending Trend is Not Sustainable
0 %
1 0 %
2 0 %
3 0 %
4 0 %
5 0 %
Social Security
Medicare
Medicaid
Interest
All other spending (includingother mandatory spending)
Federal Revenue in 200817.1% of GDP
1965 1971 1977 1983 1989 1995 2001 2007 2013 2019 2025 2031 2037 2043 2049
Stimulus Package
9v6 UNCLASSIFIED
Federal SpendingT re nd s in F e d e ra l S p e n d in g
(Percent of Federal Budget)
M an d ato r y
Ne t In te r e s t
No n -De fe n s e Dis cr e t io n ar y
De fe n s e Dis cr e t io n ar y
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
Fis ca l Ye ar
Perc
enta
ge o
f the
Fed
eral
Bud
get
ProjectionProjection
Stimulus Package
10v6 UNCLASSIFIED
Defense Budget Trends(TY $ in B)
302 328375 377 403 421 438 480 513 534 542 551 561 575 589
69 66103
116164
187 141 13050 50 50 50 50
1714
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fis cal Ye ar
TY $
in B
Bas e OCO
Defense Funding Trends
319342
444 443
506537
602
667 654 664
601 611 625 639592
ProjectionProjection
FY09 does not include the DoD portion of the American Reinvestment & Recovery Act ($7B)
11v6 UNCLASSIFIED
Federal Surplus/Deficit(Percentage of GDP)
-14%-13%-12%-11%-10%-9%-8%-7%-6%-5%-4%-3%-2%-1%0%1%2%3%
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
Surp
lus/
Def
icit
as a
% o
f GD
P
OM BCBOActual
Federal Surplus/Deficit
ProjectionsProjections
40-year average(1968-2008):
-2.4%
Federal Surplus/Deficit(TY $ in B)
-$2,000
-$1,800
-$1,600
-$1,400
-$1,200
-$1,000
-$800
-$600
-$400
-$200
$0
$200
$400
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
TY $
in B
TY $ in BTY $ in B
12v6 UNCLASSIFIED
Conventional wisdom always makes straight-line projections and they are always wrong.
~ Charles Krauthammer
13v6 UNCLASSIFIED
Strategic Landscape
The defining principle of the Pentagon’s new National Defense Strategy is balance. The United States
cannot....eliminate national security risks through higher defense budgets, to do everything....buy
everything. The Department of Defense must set priorities and consider inescapable tradeoffs and
opportunity costs....~ Sec’y Gates, Foreign Affairs, Jan / Feb 2009
14v6 UNCLASSIFIED
Fiscal Landscape
The Secretary’s vision is clear. The “writing is on the wall”. Fiscal Challenges. Hard choices have to be identified;
tough decisions will be made. Grand visions underwritten by blank checks are not
sustainable. Top lines will be more pressurized.
The Marine Corps will make the tough decisions that will result in a lean, agile and adaptable fighting force that is expeditionary and better able to address ever-evolving hybrid threats in complex environments.
15v6 UNCLASSIFIED
CMC Guidance
• “..future operational environments will place a premium on agile expeditionary forces, able to act with unprecedented speed and versatility in austere conditions against a wide range of adversaries.”
• “We must be a two fisted fighter – able to destroy enemy formations with our scalable air-ground-logistics teams in major contingencies, but equally able to employ our hard earned irregular warfare skills honed over decades of conflict.” • “..we must be prepared to move with speed, live hard, and accomplish any mission.”
-MC Vision and Strategy 2025
16v6 UNCLASSIFIED
CMC Priorities
Achieve victory in OIF / OEF Right-size the Marine
Corps Resetting for today
while modernizingfor tomorrow
Improve quality of life for Marinesand families
17v6 UNCLASSIFIED
…and a Miracle happens
