USMC Programs and

Resources

MCAA Brief

LtGen Duane Thiessen

Deputy Commandant, P&R

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  This is just an average year. It is not
as good as last year and better than
next....

2
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 Federal Budget Historical Trends
In the past 40 years, mandatory spending has grown…
1965 1975 1985

Discretionary M andatory Interest Discretio n ary M an d ato ry In terest Discretionary M andatory Interest

1995 2005 2009

Discretionary M andatory Interest Discretio n ary M an d ato ry In terest Discretio n ary M an d ato ry In terest

…reducing discretionary spending to about 1/3 of outlays

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 President’s Budget
~$3.6 Trillion in FY2009

Troubled Asset
Relief Program
Medicaid TARP
Medicare 7% 7% Other Mandatory
12% 19%

Social Security
19%
DoD
19%
Non-Defense
Discretionary
17%

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 DoD Budget

Defense
$513B in FY2009*
Agencies /
Defense-Wide
17% Army
$85.5B 27%
$139.2B

Air Force
28%
$141.2B DoN
28%
$147.4B

* Does not include supplemental appropriations 5

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 DoN Budget as a Share of DoD
Other USA
17%
27%
USAF                              
28% DoN
28%

Navy 73%

Indirect
4%

Marine Corps BISOG

17% 6%
• BISOG equals direct aviation procurement & flying hour program
• Marine Corps + BISOG $ = 6% of DoD TOA
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  There is an optimistic, idealistic, euphoric
vision where unicorns no longer poop in
the streets....unfortunately, there is also
reality.

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 The Spending Trend is Not Sustainable
50%

40% Federal Revenue in 2008

17.1% of GDP

30%
Stimulus Package Interest

20%
id
All other spending (including Medica
other mandatory spending)

10% Medicare

Social Security
0%
1965 1971 1977 1983 1989 1995 2001 2007 2013 2019 2025 2031 2037 2043 2049

Source: Congressional Budget Office

“The Long-Term Budget Outlook”, June 2009

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 Federal Spending
T re n d s in F e d e ra l S p e n d in g
(Percent of Federal Budget)
100%

90% De f e n s e
Dis c r e t io n a r y
80%
Percentage of the Federal Budget

70% No n - De f e n s e
Stimulus Package
Dis c r e t io n a r y
60%
Ne t In t e r e s t
50%
Projection

40%

30%
M an d ato r y
20%

10%

0%
73

79
81

87

95

01

11
69
71

75
77

83
85

89
91
93

97
99

03
05
07
09

13
15
17
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
Fis ca l Y e a r 9
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 Defense Funding Trends
De fense Budge t Trends
800
(T Y $ in B)
Bas e OCO
Projection
700 667 664
654
625 639
602 601 611
592 50
600 130 50 50
187 141 50
537 50
506 164
500
444 443 116
103
TY $ in B

400 69 66
342
319
14
300 17 575 589
534 542 551 561
513
480
421 438
200 375 377 403
302 328

100

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fis cal Ye ar
FY09 does not include the DoD portion of the American Reinvestment & Recovery Act ($7B)
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 Federal Surplus/Deficit
Federal Surplus/Deficit
(Percentage of GDP)
69
71
73
75
77
79
81
83
85
87
89
91
93
95
97
99
01
03
05
07
09
11
13
15
17
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19

19
19
20
20
20
20
20
20
20
20
20
20
3%
OM B Projections
2% CBO
1% Actual
0%
-1%
Surplus/Deficit as a % of GDP

-2%
-3%
-4%
-5%
-6%
-7% Federal Surplus/Deficit
(TY $ in B)
$400

-8% $200

$0

-9% -$200

-$400 40-year average

-10% -$600 (1968-2008):
TY $ in B

-11%
-$800

-$1,000
-2.4%
-12% -$1,200 TY $ in B
-$1,400

-13% -$1,600

-$1,800

-14% -$2,000

11
1

95

97

99

09

11

13
79

85

87

89

91

93

01

03

05

07

15

17

19
8

8
19

19

19

19

19

19

19

19

19

19

19

20

20

20

20

20

20

20

20

20

20

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  Conventional wisdom always makes
straight-line projections and they are
always wrong.
~ Charles Krauthammer

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 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

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 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.

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 CMC Guidance
-MC Vision and Strategy 2025

• “..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.”

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 CMC Priorities

 Achieve victory in OIF / OEF

 Right-size the Marine
Corps
 Resetting for today
while modernizing
for tomorrow
 Improve quality of life for Marines
and families

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 …and a Miracle happens 17
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