Statement of
Lieutenant General Dennis M. McCarthy, USMC (Ret)
National Executive Director
Reserve Officers Association of the United States

before the

Subcommittee on Defense
Committee on Appropriations
United States Senate

FY2008 Reserve Component Budget
May 16, 2007

 "Serving the Nation and the Citizen Warrior through
Defense Education and Advocacy since 1922."(tm)

Reserve Officers Association
1 Constitution Avenue, N.E.
Washington, DC 20002-5655
(202) 646-7713

The Reserve Officers Association of the United States (ROA) is a professional association of commissioned and warrant officers of our nation's seven uniformed services, and their spouses.  ROA was founded in 1922 during the drawdown years following the end of World War I.  It was formed as a permanent institution dedicated to National Defense, with a goal to teach America about the dangers of unpreparedness.  When chartered by Congress in 1950, the act established the objective of ROA to: "...support and promote the development and execution of a military policy for the United States that will provide adequate National Security."  The mission of ROA is to advocate strong Reserve Components and national security, and to support Reserve officers in their military and civilian lives.

The Association's 70,000 members include Reserve and Guard Soldiers, Sailors, Marines, Airmen, and Coast Guardsmen who frequently serve on Active Duty to meet operational needs of the uniformed services and their families.  ROA's membership also includes officers from the U.S. Public Health Service and the National Oceanic and Atmospheric Administration who often are first responders during national disasters and help prepare for homeland security.  ROA is represented in each state with 55 departments plus departments in Latin America, the District of Columbia, Europe, the Far East, and Puerto Rico.  Each department has several chapters throughout the state. ROA has more than 505 chapters worldwide.

ROA is a member of The Military Coalition where it co-chairs the Tax and Social Security Committee.  ROA is also a member of the National Military/Veterans Alliance.  Overall, ROA works with 75 military, veterans and family support organizations.

DISCLOSURE OF FEDERAL GRANTS OR CONTRACTS

The Reserve Officers Association is a private, member-supported, congressionally chartered organization. Neither ROA nor its staff receive, or have received, grants, sub-grants, contracts, or subcontracts from the federal government for the past three fiscal years.  All other activities and services of the Association are accomplished free of any direct federal funding.

President:
CAPT Michael P. Smith, USNR (Ret.)   410-693-7377 cell

Staff Contacts:

Executive Director: 
LtGen. Dennis M. McCarthy, USMC (Ret.)   202-646-7701
Legislative Director, Health Care:
 CAPT Marshall Hanson, USNR (Ret.)   202-646-7713
Air Force Affairs, Veterans:
LtCol Jim Starr, USAFR (Ret.)    202-646-7719
Army, QDR/G-R Commission:
LTC Robert "Bob" Feidler (Ret.)    202-646-7717
USNR, USMCR, USCGR, Retirement:
Mr. Will Brooks      202-646-7710

ROA PRIORITIES

The Reserve Officers Association CY-2007 Legislative Priorities are:

• Assure that the Reserve and National Guard continue in a key national defense role, both at home and abroad. 
• Reset the whole force to include fully funding equipment and training for the National Guard and Reserves.
• Providing adequate resources and authorities to support the current recruiting and retention requirements of the Reserves and National Guard.
• Support citizen warriors, families and survivors.

Issues to help FUND, EQUIP, AND TRAIN

• Advocate for adequate funding to maintain National Defense during GWOT.
• Regenerate the Reserve Components (RC) with field compatible equipment.
• Fence RC dollars for appropriated Reserve equipment.
• Fully fund Military Pay Appropriation to guarantee a minimum of 48 drills and two weeks training.
• Sustain authorization and appropriation to National Guard and Reserve Equipment Account (NGREA) to permit flexibility for Reserve Chiefs in support of mission and readiness needs.
• Optimize funding for additional training, preparation and operational support.
• Keep Active and Reserve personnel and Operation & Maintenance funding separate.
• Equip Reserve Component members with equivalent personnel protection as Active Duty.

Issues to assist RECRUITING AND RETENTION

• Support incentives for affiliation, reenlistment, retention and continuation in the RC.
• Fund referral recruiting programs for the National Guard and Reserve Services.

Pay and Compensation:

• Differential pay for DoD federal employees.
• Professional pay for RC medical professionals.
• Eliminate the 1/30th rule for Aviation Career Incentive Pay, Career Enlisted Flyers Incentive Pay, Diving Special Duty Pay, and Hazardous Duty Incentive Pay.

Education:

• Return MGIB-Selected Reserve to 47 percent of MGIB-Active.

Health Care:

• Extend military coverage for restorative dental care for up to 180 days following deployment.

Spouse Support:

• Repeal the SBP-Dependency Indemnity Clause (DIC) offset for both AC and RC survivors.

NATIONAL GUARD & RESERVE EQUIPMENT & PERSONNEL ACCOUNTS

KEY ISSUES FACING THE ARMED FORCES CONCERNING EQUIPMENT

• Procure the best quality equipment for fighting troops
• Ensure that the right quantity is funded to avoid shortfalls
• Make sure that new/renewed equipment reaches the warriors allowing them to:
         Fight           Train           Respond

RESERVE COMPONENT EQUIPPING SOURCES

• Funded Procurement.
• National Guard and Reserve Appropriations (NGREA)
• Supplemental

The above are preferred means to equip.  Tracking of appropriated or supplemental funds are difficult for DoD to track.  Dollars targeted to the Reserve Component don't always reach where intended.  As NGREA is controlled by each Reserve Component (RC) Chief, NGREA funding does provide an audit trail.

• Cascading of equipment from Active Component.
• Cross-leveling

This type of equipment transfer provides some units with outmoded "hand me down" equipment.  These are discredited processes that have failed in the past.  Transfer of equipment downgrades readiness for some units to improve the readiness of other units. 

• Depot maintenance and overhaul of equipment

Most equipment being overhauled is combat damaged, or has fallen outside maintenance standards.    Such equipment must be stripped down and rebuilt completely.  The process is slow; almost as long as to build from scratch.  Equipment is backlogged for units needing equipment for readiness. Costs are about 75 percent of replacement costs.  

RESETTING THE FORCE

By resetting or reconstitution of the force, ROA means the process to restore people, aircraft and equipment to a high state of readiness following a period of higher-than-normal, or surge, operations. 

Operations Iraqi Freedom and Enduring Freedom are consuming the Active and Reserve Component force's equipment. Wear and tear is at a rate many times higher then planned.  Battle damage expends additional resources.  

Many equipment items used in Southwest Asia are not receiving depot-level repair because equipment items are being retained in theater. The condition of equipment items in theater will likely continue to worsen and the equipment items will likely require more extensive repair or replacement when they eventually return to home stations.

In addition to dollars already spent to maintain this well-worn equipment for ongoing operations, the Armed Forces will likely incur large expenditures in the future to repair or replace (reset) a significant amount of equipment when hostilities cease. The services are currently funding their reset programs in large part through the use of supplemental appropriations

PERSONNEL

• TRAINING:  When Reserve Component personnel participate in an operation they are focused on the needs of the particular mission, which may not include everything required to maintain qualification status in their military occupation specialty (MOS, AFSC, NEC). 
• There are many different aspects of training that are affected
• Skills that must be refreshed for specialty
• Training needed for upgrade but delayed
• Ancillary training missed
• Professional military education needed to stay competitive
• Professional continuing education requirements for single-managed career fields and other certified or licensed specialties required annually
• Graduate education in business related areas to address force transformation and induce officer retention
• Loss:  There are particular challenges that occur to the force when a loss occurs during a mobilization or operation and depending on the specialty this can be a particularly critical requirement that must be met
• Recruiting may require particular attention to enticing certain specialties or skills to fill critical billets.
• Minimum levels of training (84 days basic, plus specialty training).
• Retraining may be required due to force leveling as emphasis is shifted within the service to meet emerging requirements.

END STRENGTH

ROA recommends a freeze on reductions to the Guard and Reserve manning levels. ROA urges this subcommittee to fund the following personnel levels.

In a time of war and the highest OPTEMPO in recent history, it is wrong to make cuts to the end strength of the Reserve Components.  The Commission on National Guard and Reserve will be examining Reserve Force Structure, and will make recommendations as to size in its report to the Congress in October 2007.

READINESS

As the committee understands, readiness is a product of many factors, including the quality of officers and enlisted, full staffing, extensive training and exercises, well-maintained weapons and authorized equipment, efficient procedures, and the capacity to operate at a fast tempo. The pace of wartime operations has a major impact on service members. 

The Defense Department does not attempt to keep all active units at full wartime readiness.  Units are rated at five different levels of readiness.  Many are capable of meeting the bulk of wartime missions, where others can meet a major portion of the wartime tasking.  The two lowest levels exist where units require resources and/or training to undertake wartime missions.  The last group may require mission and resource changes and is not prepared to go to war.

The risk being taken by DoD by not resetting the returning Active and Reserve units is that their readiness may be reduced because of missing equipment, and without authorized equipment their training levels will deteriorate.  Loss of the ability to train also hurts retention efforts.

UNFUNDED ARMY REQUIREMENTS

The Army National Guard and Army Reserve have made significant contributions to ongoing military operations, but equipment shortages and personnel challenges have increased and, if left unattended, may hamper the reserves' preparedness for future overseas and domestic missions.

To provide deployable units, the Army National Guard and the Army Reserve have transferred large quantities of personnel and equipment to deploying units, an approach that has resulted in growing shortages in nondeployed units. Also, reserve units have left significant quantities of equipment overseas and DOD has not yet developed plans to replace it.

The Department of Defense (DOD) faces the unprecedented challenge of sustaining large-scale, long-duration operations with an all-volunteer military force. In addition, DOD's homeland defense missions have taken on higher priority, and National Guard forces have state responsibilities for homeland security activities as well as their traditional roles in responding to natural disasters.

The Army National Guard reports that its average units have about 40 percent of their required equipment, and the Army Reserve reports that its units have about half of the modern equipment they need to deploy.

Readiness challenges have occurred because the Army reserve components' role has shifted from a strategic reserve force to an operational force that is being used on an ongoing basis. However, DoD has not fully reassessed its equipment, personnel, and training needs and developed a new model for the Reserves appropriate to the new operational environment.

The Army is implementing an Army Force Generation (ARFORGEN) model through which reserve units' readiness will be increased as units move closer to eligibility for deployment. However, the Army has not fully determined the equipment, personnel, and training that units will require at each stage of the cycle or fully identified the resources to implement its plans.  Funding of $1.6 billion for modularity through ARFORGEN is required.

Dual Use Equipment:  The tragedy in Greensburg, Kansas only highlights a problem faced by National Guard and Army Reserve units.  Some Governors state that their disaster relief, following an emergency, is likely hampered because much of the equipment usually positioned around their states is in Iraq.  Reserve Component units are being sent overseas with their equipment, but when they come home, the gear often stays in the war zones.

During a disaster, the capability to respond is measured by the availability of equipment.

Under DoD equipping plans, numerous items that are in the allowance from the Table of Organization and Equipment (T/O&E) have dual-use; intended for both overseas and homeland security purposes.  These shortages could also adversely affect reserve units' ability to perform homeland defense missions and provide support to civil authorities in the event of natural disasters or terrorist attacks.

As of June of last year, Army National Guard units had left more than 64,000 pieces of equipment worth more than $1.2 billion overseas. 

The Army Reserve has 14,000 items in need of inspection, repair and overhaul, and needs $742 million to replace stay behind equipment.  Depot maintenance faces a $372 million shortfall.

Compatible Equipment:  Much of the Guard and Reserve do not have priority for the newest and most modern equipment.  Much of the equipment is older and not compatible with the Active Army.  While the substitute items may be adequate for training, this equipment must not be allowed in the theater of operation as they might not be compatible to other operating units, and may not sustain logistically.

75 percent of the Army Reserve's light medium trucks are not Modular Force compatible or deployable.
50 percent of the medium line haul tractors do not support single fleet policy and aren't integral to training and operational efficiency.

AIR FORCE EQUIPMENT PRIORITIES

ROA continues to support military aircraft Multi-Year Procurement (MYP) for more C-17s and more C-130Js for USAF.  The Air Force Reserve (AFR) mission is to be an integrated member of the Total Air Force to support mission requirements of the joint warfighter. 

Air Force Reserve needs $10 million in unfunded depot purchased equipment maintenance.  Funding to support restoration and modernization of facilities is $89 million per year.

Air National Guard Unfunded Equipment Requirements
Priority 1 equipment requirements by the Air National Guard total $500 million.  This includes medical, communications, logistics, transportation, explosive ordnance, civil support teams, maintenance, security, and aviation requirements.  Some examples are:

NAVY RESERVE EQUIPMENT PRIORITIES

The Active Reserve Integration (ARI) aligns Active Component and Reserve Component units to achieve unity of command.  Naval Reservists are aligned and fully integrated into their AC supported commands.  Little distinction is drawn between AC and RC equipment.  Some unique missions remain that need support.

* C-40 A   Combo cargo/passenger Airlift  (4)           $330.0  M
The Navy requires a Navy Unique Fleet Essential Airlift Replacement Aircraft.  This aircraft was designated as the C-40A and needs to replace the aging C-9 fleet. The maximum range for the C-40A is approximately 1,500 miles more than the C-9.

The C-40A will accommodate 121 passengers, or eight pallets of cargo, or a combination configuration consisting of 3 pallets and 70 passengers. The C-40A is able to carry 121 passengers or 40,000 pounds of cargo, compared with 90 passengers or 30,000 pounds for the C-9. In addition, the maximum range for the Clipper is approximately 1,500 miles more than the C-9.  The Navy has a fleet 21 aging C-9; the Marine Corps has two C-9 aircraft.  The Navy has ordered nine C-40A's, seven of which were Congressional add-ons.

* Civil Engineering Support Equipment, Tactical Vehicles, Communications Equipment and other Table of Allowance items supporting:           $38.0 M
o Naval Coastal Warfare (NCW) Units 
o Explosive Ordnance Disposal (EOD) Units
o Naval Construction Forces (NCF)
o Navy Equipment Logistics Support Groups (ELSG)

* C-130, C-9, and C-40A upgrades and spare equipment      $69.7 M

MARINE CORPS RESERVE EQUIPMENT PRIORITIES:

The Marine Corps Reserve faces two primary equipping challenges, supporting and sustaining its forward deployed forces in the Global War On Terrorism while simultaneous resetting and modernizing the Force to prepare for future challenges.  Only by equally equipping and maintaining both the Active and Reserve forces will an integrated Total Force be seamless. 

Priorities to support and sustain USMCR forces:
Obtain latest generation of Individual Combat and Protective Equipment including,
M4 rifles
Rifle Combat Optic (RCO) scopes
Helmet pad systems
Small Arms Protective Insert (SAPI) plates
Night Vision Goggles.

Simulation Training Devises;
Adequate funding to Operation and Maintenance accounts to sustain training and Predeployment operations.

Priorities to reset and modernize USMCR forces:
Procure principal end-items necessary to reestablish Training Allowance to conduct home training;
Equip two new Light Armored Reconnaissance Companies
Procure satellite/long-haul communication equipment shortfalls
Update legacy aircraft

Deployed unit equipment readiness rates remain high (95 percent).  Ground equipment mission readiness rates for non-deployed Marine Forces Reserve Units average 85 percent based on Training Allowance. Reduced readiness results from shortages in home station Training Allowance.  There is approximately a 10 percent readiness shortfall across the Force for most equipment.

Restoration and Modernization (R&M) funding continues to be a challenge for the USMCR, due to its $16.5 million dollar backlog across the Future Years Defense Plan (FYDP) and an overall backlog of $52.6 million dollars.  More than 50 percent of USMC Reserve Centers are over 40 years old and 35 percent over 50 years old.

NATIONAL GUARD AND RESERVE EQUIPMENT APPROPRIATION

Prior to 1997, the National Guard and Reserve Equipment Appropriation was a critical resource to ensure adequate funding for new equipment for the Reserve Components. The much-needed items not funded by the respective service budget were frequently purchased through this appropriation. In some cases it was used to bring unit equipment readiness to a needed state for mobilization.

With the war, the Reserve and Guard are faced with mounting challenges on how to replace worn out equipment, equipment lost due to combat operations, legacy equipment that is becoming irrelevant or obsolete, and in general replacing that which is gone or aging through normal wear and tear.   The Reserve Components would benefit greatly from a National Military Resource Strategy that includes a National Guard and Reserve Equipment Appropriation.

To optimize the readiness of the Guard and Reserve it is also imperative to maintain separate Reserve funds from the Active duty.

ROA LAW CENTER

The Reserve Officers Association's recommends the development of a Servicemembers Law Center, tasked to advise Active and Reserve servicemembers who have been subject to legal problems that occur during deployment. 

Justification:  Recruiting of prior service members into the Reserve Component is on the decline because service members leaving active duty fear ramification of ongoing deployments on new civilian careers.  A legal center would help:
Recruit:  Encourage new members to join the Guard and Reserve by providing a non-affiliation service to educate prior service members about USERRA and SCRA protections.
Retain: Work with Active and Reserve Component members to counsel about Former Spouses Protection Act, USERRA and SCRA for the recently deployed facing legal problems.

Law Center's Services.
Counseling:  Review cases, and advise individuals and their lawyers as to legitimacy of actions taken against deployed active and reserve component members.

Referral:  Provide names of attorneys within a region that have successfully taken up USFSPA, USERRA and SCRA issues.

Promote:  Publish articles encouraging law firms and lawyers to represent service members in USFSPA, USERRA and SCRA cases.

Advise:  File Amicus Curiae, "friend of the court" briefs on servicemember protection cases.

Educate: Quarterly seminars to educate attorneys a better understanding of USFSPA, USERRA and SCRA.

ROA could incorporate the legal center into the newly remodeled ROA Minuteman Memorial building.   ROA would set-aside office spaces. ROA's Defense Education Fund would hire an initial staff of one lawyer, and one administrative law clerk to man the Servicemembers Law Center to counsel individuals and their legal representatives.

Anticipated startup cost, first year: $750,000  

CIOR/CIOMR FUNDING REQUEST

The Interallied Confederation of Reserve Officers (CIOR) was founded in 1948, and its affiliate organization, The Interallied Confederation of Medical Reserve Officers (CIOMR) was founded in 1947.  The organization is a nonpolitical, independent confederation of national reserve associations of 16 signatory countries of the North Atlantic Treaty (NATO), representing over 800,000 reserve officers.

CIOR supports four programs to improve professional development and international understanding.  Dues do not cover these programs and individual countries help fund the events. The Department of the Army as Executive Agent hasn't been funding these programs.

MILITARY COMPETITION: The CIOR Military Competition is a strenuous three day contest on warfighting skills among Reserve Officers teams from member countries. These contests emphasize military activities relevant to the multinational aspects of current and future Alliance operations.

LANGUAGE ACADEMY: The two official languages of NATO are English and French. As a non-government body, operating on a limited budget, the Academy offers intensive courses in English and French and affords national junior officer members the opportunity to become fluent in a second language.

PARTNERSHIP for PEACE (PfP): Established in 1994 with the focus of assisting NATO PfP nations develop reserve officer and enlisted organizations according to democratic principles. CIOR's PfP Committee supports the advancement of a balanced civil-military leadership. CIOR PfP Committee also assists participating countries in the Military Competition.

YOUNG RESERVE OFFICERS WORKSHOPs are arranged annually by the NATO International Staff (IS). Selected issues are assigned to joint seminars through the CIOR Defense and Security Issues (SECDEF) Commission, allowing junior grade officers to analyze Reserve concerns relevant to NATO in a combined environment.   

CONCLUSION

DoD is in the middle of executing a war and operations in Iraq are directly associated with this effort.  The impact of the war is affecting the very nature of the Guard and Reserve, not just the execution of Roles and Missions.  Without adequate funding, the Guard and Reserve may be viewed as a source to provide funds to the Active Component.  It makes sense to fully fund the most cost efficient components of the Total Force, its Reserve Components.

At a time of war, we are expending the smallest percentage of GDP in history on National Defense.   Funding now reflects about 3.9% of GDP.  ROA has a resolution urging that defense spending should be 5% to cover both the war and Homeland Security.   While these are big dollars, the President and Congress must understand that this type of investment is what it will take to equip, train and maintain an all-volunteer force for adequate National Security.

The Reserve Officers Association, again, would like to thank the sub-committee for the opportunity to present our testimony.  We are looking forward to working with you, and supporting your efforts in any way that we can.

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