Current Service plans for Reserve component equipment procurement are contained in the Department's P-1R report which accompanies the President's Budget. It reflects the types, quantities and costs of equipment items proposed for procurement for the Reserve components. The report identifies equipment procurement of $2.3 billion in FY 1989 for the National Guard and Reserve, a reduction of 8 percent compared to that planned for FY 1989 in the last year's President's Budget. The Department of the Army has requested $1.3 billion in FY 1989 for procurement for Army Reserve components. The request includes $1.0 billion for Army National Guard procurement and $276 million for Army Reserve procurement. The Department of the Navy has requested $189 million for procurement of Naval Reserve and Marine Corps Reserve equipment. The Navy's request includes $44 million for Marine Corps Reserve procurement and approximately $145 million for Naval Reserve procurement. The Department of the Air Force has requested $842 million in FY 1989 for its Reserve components. The Air Force request includes $661 million for the Air National Guard procurement and $181 million for Air Force Reserve procurement. Even if we achieve one hundred percent of our current equipment redistribution and procurement plans, equipment shortfalls will remain. Data from our FY 1989 National Guard and Reserve Equipment Report indicates a shortfall at the end of FY 1991 of approximately $7 billion. While this is a significant improvement over the $10-11 billion mobilization shortfall forecast last year, further progress in closing the gap between equipment-on-hand and wartime requirement is becoming increasingly difficult, given the greater competition for limited budget resources. Force structure adjustments made necessary by reduced resource levels may also have a significant impact on the pace of future progress in eliminating this deficit. National Guard and Reserve Facilities Maintenance of our present and future facilities remains one of our high priorities. component facilities, we have requested $582 million within the operation and maintenance budget. These funds reflect a reduction of $82 million from the FY 88 funding level. Program affordability cutbacks, particularly in the Army Reserve components, means that the backlog of maintenance will continue to grow as needed repairs are deferred. We have requested $473 million for Reserve component Military Construction. This represents a reduction of over $111 million from the FY 88 request and $49 million from the previously authorized FY 89 level. Affordability requirements have dictated that the Services carefully review all new construction requests to ensure they support new weapon systems or force structure, improve readiness and mission accomplishment and/or permit realistic training. Many renewal and replacement projects have been deferred until the 1990's. We are pleased to report that management initiatives taken as part of our oversight of the Reserve component facilities programs, produced (for FY 1987) a first year major construction project award execution rate of over 97 percent of the program, the highest in the Department of Defense. The efforts and coordinated actions of my staff, the Reserve component military construction program managers, and the execution agents have provided needed facilities to the National Guard and Reserves in the shortest possible time. Employer Support The work of the National Committee for Employer Support of the Guard and Reserve (NCESGR) is becoming increasingly important, and it has been the focus of a great deal of my personal attention since I assumed office. Grass roots organizations of volunteer business, labor, civic, and local military leaders are being developed in all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands. The number of volunteers now exceeds 3,500. Employer pressures on drilling National Guardsmen and Reservists are common. As Guardsmen and Reservists are asked to assume even greater responsibilities, the periods of absence from the work place increase and so do employer pressures. It is anticipated that during this next year, approximately one-third of our Guardsmen and Reservists who are within their first five years of service will quit because of employer pressures. The substantial costs of training replacements make it essential that we relieve those pressures. Several steps have been taken in recent months. In August, 1987, the Secretary of Defense appointed a prominent corporate executive, John G. McElwee, as the new volunteer Chairman of the National Committee. Mr. McElwee, who recently retired as the Chief Executive Officer of the John Hancock Mutual Life Insurance Company, is a retired Naval Reserve Officer with combat aviation experience in World War II. His varied experiences as both a successful business executive and a commander of Naval Reserve units make him ideally suited to assume his new role in reaching out to business and corporate leaders. In September, 1987, a National Conference of the leaders of all of the states and territories was held in Washington, D.C. Key members of Congress and senior Administration officials participated. The President produced a video taped message to NCESGR volunteers and employers. I have recently implemented several new management initiatives to invigorate and focus NCESGR's efforts. A nationwide public service advertising program in cooperation with The Advertising Council has also been renewed. During the past year, the value of the NCESGR-Advertising Council media spot announcements surpassed $35 million dollars. Some 42 "Bosslifts" were also conducted by NCESGR last year. Each bosslift gave 40 employers an opportunity to receive briefings from Department of Defense agencies on the role of the National Guard and Reserve within the Total Force and to observe reserve training at such locations as the National Training Center, California; Nellis Air Force Base, Nevada; and Fort Carson, Colorado. NCESGR's Ombudsman operation continues to serve as a clearing house to receive and informally mediate complaints, provide guidance, and resolve disputes with employers and managers. This effort is coordinated closely with the staff of the Department of Labor through a mutually supportive working relationship at all levels. In 1987, NCESGR's national ombudsman staff acted on more than 5,400 inquiries/complaints. Additional reservist employment problems were handled locally by state committee ombudsmen. Legislative Proposal I urge the Congress to enact the Reserve Officer Personnel Management Act (ROPMA), a proposal which has been included in previous legislative proposals submitted by the Administration. This important tool would resolve certain critical management problems within the Reserve components. ROPMA would be the first comprehensive revision to the Reserve Officer Personnel Act (ROPA), which was enacted in 1954. That Act has provided the basis for appointment and career management of reserve officers for some thirty-three years. Piecemeal adjustments to ROPA have been made over the years and a number of those require periodic renewal. ROPMA is designed to provide a visible, uniform, and improved officer personnel management system for reserve officers on the reserve active status list and consistent and equitable treatment of officers who are transferring to and from the reserve active status list and the active duty list. It is patterned closely after the Defense Officer Personnel Management Act, which was enacted in 1980. The enactment of ROPMA would revise the laws governing reserve appointments, promotions, separations, and transfers to the Retired Reserve. It would stimulate the type of long-range planning which is essential to providing reserve officers with attractive and meaningful careers, and which is necessary to attract and retain officers of the proper age and grade who possess the skills and experience needed by our Reserve components. I hope that you will act on this important management tool as quickly as possible. Summary There is no doubt that the readiness and war-fighting capability of the Reserve components of the United States Armed Forces have improved in recent years. Today, our Reserve Forces include more qualified people, who work with better equipment, and who receive more realistic training, than at any previous time in our nation's history. Our implementation of an effective Total Force Policy, however, necessarily requires that we be relentless in our continued efforts to ensure that the National Guard and Reserve--especially early deploying units--receive and retain sufficient numbers of properly skilled and trained personnel, and sufficient modern equipment, to be ready for combat on short notice. We've made a good start, but much remains to be done. Mr. Chairman, this completes my statement. Thank you very much for the privilege and opportunity to appear before this committee. |