{"id":29737,"date":"2020-02-19T13:00:19","date_gmt":"2020-02-19T13:00:19","guid":{"rendered":"https:\/\/one.sightlinemg.com\/armytimes\/uncategorized\/2020\/02\/19\/army-three-star-predicts-future-financial-woes\/"},"modified":"2026-08-08T02:46:25","modified_gmt":"2026-08-08T02:46:25","slug":"army-three-star-predicts-future-financial-woes","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/armytimes\/news\/your-army\/2020\/02\/19\/army-three-star-predicts-future-financial-woes\/","title":{"rendered":"Army three-star predicts future financial woes"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The Army is trying to figure out how to <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2019\/06\/27\/army-leadership-shakeup-shouldnt-impact-troops-and-priorities\/\" target=_blank>fund modernization goals<\/a> under what leaders expect will be a flat budget with <a href=\"https:\/\/www.militarytimes.com\/news\/2019\/12\/26\/biggest-military-pay-raise-in-years-takes-effect-jan-1-check-out-the-complete-chart\/\" target=_blank>rising personnel and operational costs<\/a> in the years to come.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When inflation is factored in, the Army\u2019s real purchasing power is actually decreasing, according to Lt. Gen. Thomas Horlander, the Army\u2019s top financial management officer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To trim the fat, the service has been going through so-called \u201cnight court\u201d reviews, in which leaders evaluate programs every year and cut legacy systems in order to fund priorities like <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2019\/10\/18\/the-team-that-is-transforming-army-fires-leads-the-services-priorities\/\" target=\"_blank\">long-range precision fires<\/a>, <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2019\/11\/22\/army-aviators-ask-for-more-comfort-less-workload-from-future-vertical-lift-teams\/\" target=\"_blank\">future vertical lift<\/a> and <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2019\/10\/18\/how-the-soldier-lethality-team-is-equipping-soldiers\/\" target=\"_blank\">soldier lethality<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the service\u2019s modernization programs enter pilot tests and are fielded to troops, the Army expects many more night court sessions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf you thought some of these decisions that we\u2019ve made here in the last couple years were tough, I will tell you, there\u2019s some difficult decisions on the horizon,\u201d Horlander said Tuesday at the Association of the U.S. Army. \u201cWhen you factor in inflation, [the budget] is actually a downturn in real purchasing power over the last few years. This year it\u2019s about a 1 percent downturn in real purchasing power. We need real purchasing power growth of 3 to 5 percent.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Modernization so far hasn\u2019t sapped the size of the Army, which is still steadily growing. The Army\u2019s intended end-strength goal for fiscal year 2020 is 485,000 active duty troops. The 2021 budget calls for that to grow to 486,000 soldiers, with similar growth in years to come.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re going to have modest growth of about 1,000 soldiers per year for the next four or five years,\u201d Maj. Gen. Paul Chamberlain, director of the budget at the office of the assistant secretary of the Army, said Feb. 10.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/armytimes\/news\/your-army\/2020\/02\/10\/army-end-strength-goal-gets-bump-this-year-but-growth-to-slow-in-the-future\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ARM-expert-soldier-badge-web.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Army end-strength goal gets bump this year, but growth to slow in the future<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The active duty Army\u2019s planned end-strength for 2021 is currently 486,000 soldiers, minus 100 soldiers who will transfer to the Space Force.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Many defense analysts have acknowledged a looming reality if future budgets stay flat: The Army will have to look at the rising costs of current wars combined with manning and maintaining its large force, which surpasses one million soldiers when reservists and guardsmen are combined with those on active duty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Operations and personnel costs take up roughly two-thirds of the Army\u2019s $178 billion budget request for fiscal 2021. The budget brought along a 4.8 percent increase in personnel costs thanks in part to a well-deserved increase in soldier pay, as well as a 3.6 percent increase in operations and maintenance costs, according to slides Horlander presented Tuesday. For comparison, procurement and research for new technology only grew by 0.3 percent, the slides showed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe can\u2019t just focus on research, development, acquisition; we can\u2019t just focus on end-strength and people; we can\u2019t just focus on readiness. We have to strike that balance,\u201d Horlander said. \u201cTherein lies the challenge.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although Horlander didn\u2019t address the possibility of cuts to force structure \u2014 like those seen during the <a href=\"https:\/\/www.armytimes.com\/news\/pentagon-congress\/2015\/07\/09\/army-lays-out-plan-to-cut-40000-soldiers\/\" target=_blank>Barrack Obama administration<\/a> \u2014 the idea is certainly already floating around Washington, D.C., as budget battles loom.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI won\u2019t sugar-coat it, there are going to be some hard decisions in the future,&#8221; Horlander added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Analysts with the Center for Strategic and International Studies wrote in a <a href=\"http:\/\/defense360.csis.org\/wp-content\/uploads\/2020\/02\/FY-2021-Preview-Brief_FINAL.pdf\" target=_blank>February report<\/a> that while the night court reviews and <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2020\/02\/12\/pentagon-realignment-will-send-1st-sfab-to-africa\/\" target=_blank>changes to combatant command<\/a> force allocations are helpful, those appraisals \u201cmust aim for more than simply trimming fat.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, they need to \u201clook to arrest the rising personnel and operation and sustainment costs that consume an ever-larger share of the defense budget each year,\u201d the report reads.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Army once planned to grow to a 500,000-soldier active duty force by 2028. Although recruiting and retention woes have plagued the service as it marches toward that end-strength goal, the Army chief of staff and service secretary haven\u2019t said they\u2019re curtailing their recruiting efforts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cStrategists often argue for cuts to Army end-strength because the Pacific is primarily an air\/maritime theater and because large wartime deployments to Eastern Europe would be difficult,\u201d CSIS analyst Mark F. Cancian <a href=\"http:\/\/defense360.csis.org\/wp-content\/uploads\/2020\/02\/FY-2021-Preview-Brief_FINAL.pdf\" target=_blank>wrote <\/a>in the February report. \u201cThe Army, however, argues that it will still be a major player in a great power conflict and is stretched by deployments in peacetime. Thus, it will likely try to hang on to its modest force expansion plans.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;There\u2019s some difficult decisions on the horizon,\u201d the Army&#8217;s top uniformed budget officer said Tuesday.<\/p>\n","protected":false},"author":7,"featured_media":60747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":70,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[100,23,92,12,25,70],"tags":[],"coauthors":[3385],"class_list":["post-29737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-home","category-left-column","category-news","category-newsletters","category-your-army"],"acf":{"subheadline":"","legacy_arc_id":"M5DZQSWJRVCKFCOMK6N47K4KHE","arc_canonical_url":"\/news\/your-army\/2020\/02\/19\/army-three-star-predicts-future-financial-woes\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Army three-star predicts future financial woes - Army Times<\/title>\n<meta name=\"description\" content=\"&quot;There\u2019s some difficult decisions on the horizon,\u201d the Army&#039;s top uniformed budget officer said Tuesday.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Army three-star predicts future financial woes\" \/>\n<meta property=\"og:description\" content=\"&quot;There\u2019s some difficult decisions on the horizon,\u201d the Army&#039;s top uniformed budget officer said Tuesday.\" \/>\n<meta property=\"og:url\" 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