Future Years Defense Program

The Pentagon's Future Years Defense Program (FYDP) is the official document that summarizes the force levels and funding associated with programs that the military would like to see approved by Congress. The FYDP presents estimated funding needs for the budget year for which the money is being requested from Congress and at least the four years following it. GAO compared the planning levels for the common years of the fiscal year 2000 and 2001 FYDP requests. GAO found that, in constant dollars, there are only minor increases in the projected year-to-year funding totals over the common five-year period (2001-2005) from the 2000 FYDP to the 2001 FYDP. The Defense Department plans to increase total funding over the five-year period by $15.8 billion, or 1.1 percent, over the total funding projected in the 2000 FYDP. Although total programmed funds for military personnel remain virtually the same in the year's FYDP as in last year's FYDP, programmed personnel funds for the Army and Air Force active forces decline, whereas programmed funds for other forces increase. The largest increase in the operation and maintenance account is $9.7 billion, which is earmarked for overseas contingencies. Although DOD's programmed procurement spending remains above the $60-billion threshold recommended by the Quadrennial Defense Review in 1997, the 2001 FYDP projects a $3.2-billion decrease, or one percent, from last year's FYDP projections.

GAO noted that: (1) in constant dollars, there are only minor increases in the projected year-to-year funding totals over the common 5-year period, 2001-2005, from the 2000 FYDP to the 2001 FYDP; (2) DOD plans to increase total funding over the 5-year period by $15.8 billion, or 1.1 percent, over the total funding projected in the 2000 FYDP; (3) although total programmed funds for military personnel remain virtually the same in this year's FYDP as in last year's FYDP, programmed personnel funds for Army and Air Force active forces decline, whereas programmed funds for other forces increase; (4) the largest funding increase in the operation and maintenance accounts is $9.7 billion, which is programmed for overseas contingencies; (5) while DOD's programmed procurement spending remains above the $60 billion threshold recommended by the last Quadrennial Defense Review in 1997, the 2001 FYDP projects a $3.2-billion decrease, or 1 percent, from last year's FYDP projections; (6) research, development, test, and evaluation is programmed to receive the largest appropriation increase ($15.9 billion, or 9.6 percent) and, within this category, the defensewide account is programmed to receive the largest increase ($8.3 billion); and (7) the total reduction in military construction funds would be greater than $2.2 billion were it not for $1.9 billion of new funds in the 2001 FYDP for a base realignment and closure round in 2003.