Defense budget sets stage for tough choices ahead.

• Author: Farrell, Jr., Lawrence P.
• Position: PRESIDENT'S PERSPECTIVE

AS CONGRESS CONTINUES to dissect the details of the Bush administration's proposed defense budget for fiscal year 2008, it is becoming increasingly apparent that the nation's military faces a worrisome financial future.

At first glance, it is hard not to notice the substantial increases in overall defense spending. The president's request of $481.4 billion--in addition to $141.7 billion for war costs in fiscal 2008--is 11 percent larger than last year's budget. Funding for new weapons technology--at nearly $102 billion for procurement and $75 billion for research and development--is at its highest level since the 1980s Reagan buildup. This budget, it is worth noting, represents the 10th consecutive year of growth in defense spending.

The budget, however, does not include the additional $12 billion to $15 billion that will be needed to cover the planned growth of 92,000 troops in the Army and the Marine Corps. Further, there is a mismatch between the long-term modernization plans and the funding projections, according to many analysts. The budget also assumes that Congress will approve a measure to have military veterans pay a larger portion of their health care premiums. Most lawmakers are likely to oppose such a politically unpopular move, which means the Pentagon may have to add at least $16 billion to the budget.

Significantly, the $481.4 billion baseline budget for fiscal 2008 is $49 billion higher than 2007 and $17 billion higher than what the Pentagon had forecast a year ago that it would need for 2008.

This budget also sets the stage for what could be the beginning of a drawn-out debate over how the services should share a limited pool of defense dollars.

In 2008, the Army's share increases from 25.4 percent to 27 percent--on an absolute basis, over twice the increase of any other service, and the Marine Corps' from 3.7 percent to 4.3 percent. The Navy's portion will be dropping from 25.5 to 24.8 percent, and the Air Force's from 29.7 percent to 28.2 percent. While it's unquestionable that ground forces are bearing the brunt of the current fight and should be resourced accordingly, the Air Force and the Navy are in dire need of modernization dollars to revamp their aging fleets.

Interservice rivalries are not in the nation's best interest, especially in a time of war. But unless the defense budget top line experiences continuous and substantial growth, we are likely to see intense competition among the services, especially in the...