DOD FY99 Conference Report: Better than Requested

Conferees in the House and the Senate have resolved their differences on H.R. 4103, the FY 1999 appropriations bill for the Department of Defense. The House approved the final version of the bill on September 28, the Senate on September 29. The bill now goes to President Clinton to be signed. The conference report accompanying the bill, H. Rpt. 105-746, provides information on funding for DOD research, as described below.

Research is funded within DOD in two categories: Basic Research (category 6.1) and Applied Research (category 6.2). These two categories fall within the section entitled “Research, Development, Test and Evaluation,” or RDT&E, and together they make up what is referred to as the DOD Technology Base. Both categories would receive more than requested, and at least six percent more than their FY 1998 funding.

DOD RESEARCH

DOD FY 1998 FY 1999 House Senate Conference

Service Approp. Request bill bill Report

(In millions)

Army

6.1 180.6 200.8 180.6 189.5 185.3

6.2 654.0 511.3 631.8 554.5 633.6

Navy

6.1 338.7 362.7 338.7 362.7 362.7

6.2 494.0 524.7 553.0 557.0 570.7

Air Force

6.1 196.3 209.4 202.8 209.4 210.4

6.2 568.0 582.0 599.5 588.0 605.6

Defense-wide

6.1 326.2 338.4 330.6 346.4 354.1

6.2 1,281.0 1,401.8 1,359.3 1,401.9 1,379.2

TOTAL

6.1 1,041.8 1,111.3 1,052.7 1,108.0 1,112.5

6.2 2,997.0 3,019.8 3,143.6 3,101.4 3,189.1

Total Basic Research (6.1) within DOD would increase by 6.8 percent over the FY 1998 appropriation, and 0.1 percent over the request. Basic Research within the Army would increase 2.6 percent over FY 1998, but remain 7.7 percent below the request. The Navy would receive its full request for Basic Research, which is 7.1 percent over FY 1998. The Air Force would receive 7.2 percent more than FY 1998 funding, and 0.5 percent over its request. Defense-wide Basic Research would increase 8.6 percent above FY 1998 and 4.6 percent above the request.

The good news for Basic Research is in significant contrast to last year, when the FY 1998 appropriation was effectively frozen at the FY 1997 level. Even as recently as this June, House appropriators, in their committee report, stated that in the context of “shortfalls in training and readiness accounts...the Committee continues to question whether budget growth in basic research is warranted.” (See FYI #102 .) The conference report does not provide an explanation of its decision to raise Basic Research above the requested level.

Total Applied Research (6.2) would increase 6.4 percent over FY 1998 funding, and 5.6 percent over the request. Applied Research within the Army would lose ground by 3.1 percent from current funding, even though the conference report provides 23.9 percent more than requested. Navy Applied Research would increase 15.5 percent above current-year funding and 8.8 percent above the request. The Air Force would receive 6.6 percent over current-year Applied Research, and 4.1 percent above its request. Defense-wide Applied Research would increase 7.7 percent over FY 1998, which is 1.6 percent below its request.

Elsewhere, the conference report describes reductions to be “applied proportionally” to all programs within RDT&E. It appears that these cuts would reduce the RDT&E programs - including Basic and Applied Research - by less than 0.3 percent. The conference report notes that the reductions are made “to reflect savings from revised economic assumptions.”

In addition, the report calls for some rescissions. While these would be mostly taken from already-appropriated FY 1998 funds, in some cases they would be taken partly from FY 1999 funds also, thus reducing the final appropriations by an additional amount. How this will affect FY 1999 levels is unknown.

The table above does not show the effects of the reductions or rescissions on Basic and Applied Research.

While the DOD appropriations bill has passed both houses of Congress and is ready for the President’s signature, it may not be the last word in Defense Department funding for FY 1999. DOD officials have recently testified that tight budgets are causing concerns about military readiness, and the Administration might request additional funding for readiness and for Bosnia operations in an emergency supplemental bill. It is possible that, in order to increase funds for these areas, Congress might seek offsets by cutting other programs such as research.