within the United States and its Territories and fully intend to conduct the major portion of our training at CONUS installations. However, we are an integral part of the Total Force and can expect to be called upon to defend our interests throughout the world. We must train in far-flung locations to acquire the ability to mobilize, move, deploy, sustain our forces and maintain our equipment as a creditable deterrent force. Such deployments are quite beneficial in developing a professional, disciplined military organization.

To enhance our ability to effectively respond to our Federal mission, Army and Air Guard units continued to be deployd worldwide in the past year. Our involvemert in training, exercises, and deployments throughout the world is a significant factor to our readiness enhancement. Overseas Deployment Training (ODT) provides the Army Nat.onal Guard (ARNG) soldier the opportunity to learn about the unit's mission and the operating procedures of their wartime gaining command. U its conduct mobilization, deployment, reception planning and training. Uit readiness is improved by participation of units/cells in CCO US unilateral, joint, and combined exercises. Units and cells selected for ODT are identified by the Time-Phased Force Development List (TPFDL)nd the CAPSTONE alignment with the active forces. The ODT plan for 1988 s for participation of 1,407 units/cells and 41,716 personnel.

The Air National Guard (ANG) is a full partner with other active and reserve components ir overseas deployments, JCS exercises, Air Force training exercises, and ANG sponsored Composite Force Training exercises. A trend of increased ANG participation in joint exercises has enriched training and readiness. The ANG overseas deployments move entire units to theater locations throughout the world for short periods of time. These deployments provide realistic, valuable, theater specific training. Since airlift costs account for more than 90 percent of deployment costs, the ANG has exercised several deployment concepts in order to maximize its training dollars. Using multi-unit deployments, the ANG has reduced per unit airlift costs by 20-25 percent. Use of dual-role KC-10s (air refueling and airlift) also reduced the overall deployment cost.

The Air Guard also supports the Army in exercises throughout the world. Joint training programs, such as at the National Training Center, Fort Irwin, California, and the Joint Readiness Training Center, Fort Chaffee, Arkansas, provide joint training experience for both the Army and Air National Guard. To sharpen ANG fighting skills and familiarize our ANG personnel with joint operations, Composite Force Training exercises are conducted throughout the year. These exercises are sponsored and planted by Air Guard flying units, Field Training Sites, and active Air Force units. These exercises encompass all mission areas of the Air Guard and are developed for the specific purpose of providing realistic training for all participants.

Deterrence and readiness are keys to our success in performing our federal mission. During his first term, George Washington, a former Colonel in the Virginia militia said, "The only probable means of preventing insult or hostility for any length of time and from being exempted from the calamities of war, is to put the national militia in such a condition as they may appear truly respectable in the eyes of our

friends and formidable to those who would otherwise become our enemies." In today's language, this translates to deterrence. Deterrence is the most fundamental element of our defense policy and the cornerstone of our alliance relationships. Deterrence must not only prevent conventional and nuclear attack on the United States, but must extend such protection to our allies. As you know, JCS defines deterrence as the prevention from action by ear of the consequences. Deterrence is a state of mind brought about by the existence of a creditle threat of unacceptable

counteraction.

While our way of life clearly support the deterrence concept, we must be ever vigilant and always capable of fighting and winning. Our Guard soldiers and airmen must be fit to fight, trained to use the equipment prov:.ded, and taught to sustain themselves in a hostile environment.

Our equipment must be state-of-the-art, able to destroy the enemy as well as to protect our troops. Jur units must attain the maximum readiness level and must be prepared to fill their defense roles or a moment's notice. As you know readin's, is the ability of forces, urits, weapons, systems, or equipment to deliver the outputs for which they were designed, including the ability to deploy and employ without Unacceptable delays. In this light, the real value of Army and Air Guard p.:rticipation in OCONUS training is readily apparent and contributes significantly to our ability to achieve a specified wartime objective.

The Guard today is better manned, better trained, and better equipped. than ever in is long history. Congress has placed great faith and trust 1 us and has rovided much assistance in our manning, training, and equipping. We have been asked to accept additional missions and responsibilities and have responded well to these challenges. Our efforts to recruit and retain a high quality, professional, and dedicated force have pail dividends.

The Air National Guard and Army National Guard have consistently been number one and two, respectively, in retention rates among Reserve Components. In FY 87, the ANG retention rate was 89.6 and the ARNG retention rate was 83.5. As a direct result of these excellent retention rates and aggressive recruiting programs both the Air and Army National Guard were able to reach their highest strength levels ever.

We in leadership must continue to provide these soldiers with the very best ecuipment and quality training to ensure their survival should they be required to defend this nation. We have done well, but there is room for improvement.

We, as well as all Americans, must recognize that security is not cheap. Air Force Secretary Edward C. Alridge, Jr., has said "The reality is that defense spending alone has not caused the federal deficit nor will gutting the defense budget solve the deficit." The fact is that Reserve Forces are a bargain, but they cannot do it alone. The active forces are needed more than ever; the Active and Reserve Components must be fully integrated into training, equipment, and systems. The requirement to equip and train our Reserve forces exists because of the

necessity of those forces to be fully combat ready.

They must be ready to stand alone or integrate fully with their active duty counterparts.

EQUIPMENT

Although the Department of the frey continued the modernization of the ARNG by distributing over $2 billion worth of equipment to the ARNG in FY 87 and projects additional deliveries of $1.8 billion in FY 88, we continue to have shortfalls. Our equipment is getting more use in the extensive training environment and due to its age, requires more and more maintenance. We have gained much but still there are needs. The most limiting readiness factor in the ANG is equipment, especially the need for modern equipment. We appreciate the pronounced interest Congress has taken over the past several years in supporting the Guard and Reserve forces by providing additional procurement funding. Through this specifically approved funding. the Air Guard has been able to buy new C-130s, new operational support aircraft, and, in FY 88, new MA-60 helicopters for our rescue and recovery units. Miscellaneous equipment monies have provided the Air Guard with more modern communications equipment, needed medical equipment, safety equipment, and training devices such as the Air Combat Mane uvering Instrumentation.

Shortages in major items of weapons, support equipment, and communications equipment degrade equipment-on-hand readiness and capabilities of units in the ARNG. Although the distribution of equipment from Army procurement and Congressionally dedicated procurement funding has continually grown, growth in force structure requirements often offset these gains. Some examples of remaining critical ARNG equipment shortages are: personnel carriers, 5-ton trucks, tactical FM radios, and M198 Howitzers just to mention a few.

The total value of ARNG mobilization equipment requirements at the beginning of FY 88 is 31 billion dollars. Receipt of equipment in FY 87 improved the mobilization equipment fill rate to 72 percent, compared to 66 percent in the previous year.

OUR NEEDS

Poacetime demands upon our members are unparalled, and each of our soldiers and airmen must consider the additional demands of job, family, home responsibilities and educational requirements. Limited time is an important factor we must consider; fully-trained and experienced full-time support (FTS) personnel are our way of compensating for guardrembers' limited time availability. The request I present to you in the President's Budget for military technicians and Active/Guard Reserve (AGR) growth has been pared down to meet the constrained resource levels mandated to balance the budget. In order to meet the reductions allocated to the Army and Air Force and, therefore, to the Army National Guard and Air National Guard, I am unable to fund any growth in end-strengths for technicians or AGRs in the Army Guard and only 112 AGR for the Air Guard. Full-time manning continues to be our highest priority and is urgently needed for us to carry out the training and operational missions we have been asked to accept. While the FTS on the Army side remains constant, requirements based on new activations have

increased by almost 2,500 spaces.

When faced with the choice of ensuring the units we have are effectively trained and manned or to expand to additional units and strength, our first responsibility must be to the total force we now have.

The National Guard needs continued support and emphasis on benefits to make National Guard service attractive. Incentive Programs are a must. The Army Continuing Education System (ACES) provides various educational opportunities to enlisted soldiers and commissioned officers who attend school part-time (e.g., high school completion and part-time post-secondary school) and are not covered by the Montgomery GI Bill. Commissioned officers incur a four year Selected Reserve service obligation following the last ACES supported class.

The Montgomery GI Bill is a most valuable entitlement and provides benefits to our soldiers and airmen who are attending undergraduate college on a half-time or more basis. Presently, the ARNG has over 92,000 members and the ANG has over 40,000 members who meet basic entitlement requirements. The Veterans Administration reports 32,000 ARNG members and 11,000 ANG members are receiving benefits to date. participation is expected to increase.

Our

ACES provides tuition assistance to soldiers who attend college on a less than half-time basis as well as many low-cost high-impact educational opportunities that the Montgomery GI Bill doesn't cover (e.g., high school completion, college credit by examination, and college credit by evaluation). These two programs complement each other in covering the educational spectrum and are very useful. We continue to need them.

In addition to the MGIB, the ANG offers incentives in the bonus and student loan repayment programs. These programs provide cash incentives and assistance in repaying qualified, federally insured student loans to members who enlist or reenlist in identified critical skills. Other benefits, such as the Community College of the Air Force and free College Level Examination Program (CLEP) and Defense Activity for Non-Traditional Educational Support (DANTES) testing, are also available. These programs have proven to be effective tools for recruiting ANG members. As retention tools, these programs save the government substantial funds by reducing training costs associated with bringing new and untrained personnel into the Air Guard. Collectively, the entitlements and incentives promote recruitment and retention of trained and experienced ANG members and must be continued.

The Selected Reserve Incentive Program (SRIP) provides enlistment bonuses that may be either a $2,000 critical skill or $1,500 unit bonus. Additionally, the program offers the retention bonus, affiliation bonus, the Student Loan Repayment Program, and the Health Professionals Loan Repayment Program. Current authority expires September 1990.

To support the Air National Guard training needs, we must look to the professional military training schools and technical training schools.

These two separate areas provide training in our wartime tasks, Air Force Specialty Code (AFSC) qualifications and in the area of Professional Military Education, leadership training, and advanced management courses. The Air National Guard receives formal technical training for wartime skills, through a combination of Air Force formal schools and unit on-the-job training. This combination provides a well-rounded, trained individual who can rapidly be mobilized and deployed. Our limiting factors are the availability of the traditional guardsman, and the military personne: resources (currently costing more than $60 million annually) that provide the school days. We must constantly prioritize the level of trai ing available for the new missions and equipment due to limited resources Along with the technical training there is a need for Professional Miliary Education. This provides for the development of leadership skills and increases the management capabilities of the Air National Guard of icers and noncommissioned officers (NCOs). We need to maintain the current level of funding in the military personnel training accounts to pay for these school days. Unfortunately, to meet our required FY 89 buget reductions, the ANG had to significantly reduce the funds that support our training.

Budgetary con traints have reduced the number of hours available in the ARNG FY 88/89 Flying Hours Program (FHP).. Funding will support 360,000 hours in FY 88 and 341,000 in FY 89. Modernization and force structure changes are the most significant variables in the FHP. The FY 89 budget falls short of funding the 365,000 hours needed to meet aircrew training minimum requirements. Under these circumstances, aviation units will experience reduced training readiness because of a shortage in flying hours.

MOS Qualification in the ARNG is another area of concern. A significant number of prior service personnel, interstate transfers, and individuals transferring between units do not have a MOS match in the positions to which assigned. We have a number of programs designed to qualify our soldiers in their job skills as soon as practical. Whether gained through resident service schools, non-resident schools using courses tailored to our training environment, or absent either of these, supervised-on-the-job-training, MOS qualification is a major challenge the Guard faces. The challenge to MOS qualify our personnel is resource intensive and we must have the funds required to insure that our soldiers are sufficiently prepared to serve effectively.

SUMMARY

The National Guard has proven to be an integral part of the Total Force. We exist to support U.S. foreign policy and national security objectives, while providing a State militia uniquely qualified for local disaster and public safety needs. Our responsibilities are truly global, national and local. Each offers its own set of challenges for the present and the future. We are ready to meet these challenges. The capability of our soldiers and airmen to respond to the most demanding wartime missions is a matter of record. The Secretary of the Army, the Honorable John 0. Marsh, has said, "Our Reserve and National Guard components, upon which we rely so heavily, prove their readiness daily in challenging assignments around the world."