SEC. GATES: Good afternoon. I have a statement, and copies of it will be available after the — after the press briefing.
Yesterday Secretary Rice and I, General Cartwright and Deputy Treasury Secretary Kimmitt met with members of Congress to discuss ongoing operations in Iraq, Afghanistan and elsewhere. We reviewed the real security gains being made in Iraq as well as the political and economic situation.
I also strongly urged the Congress to pass a global war on terror funding bill that the president would sign. With the passage of the Defense Appropriations Act, there is a misperception that this department can continue funding our troops in the field for an indefinite period of time through accounting maneuvers, that we can shuffle money around the department. This is a serious misconception.
The fact is, the department has significantly less funding flexibility than it had last spring. In the fall of 2006, Congress provided us with a bridge fund of $70 billion until passage of the full war supplemental. The full supplemental did not pass Congress until late May.
This fall, the department has been operating under a continuing resolution. Now that the regular appropriations bill has been enacted, we are left with no bridge fund and only our base budget to support normal war operations. Further, Congress has provided very limited flexibility to deal with this funding shortage. We can only move a total of $3.7 billion under general transfer authority, which only amounts to a little over one week’s worth of war expenses.
All this leaves the department only with undesirable options to continue operations in the absence of a bridge fund. The path we believe is least undesirable fiscally and militarily would involve the following.
The military would cease operations at all Army bases by mid-February next year. This would result in the furloughing of about 100,000 government employees and a like number of contractor employees at Army bases.
These layoffs would have a cascading effect on depots and procurements. Similar actions would follow for the Marine Corps about a month later. By law, we’re required to notify certain union employees 60 days in advance, so appropriate notices would have to go out starting in mid-December.
If the Congress does not provide bridge funding this week on a bill that the president will sign, and given the uncertainty of future action in December, by the end of this week, as a prudent manager, I will be obliged to take a series of anticipatory steps.
First, submit an urgent reprogramming request to the Congress. And second, direct the Army and Marine Corps to develop a plan to furlough employees, terminate contracts and prepare bases for reduced operations.
These plans would begin to be implemented in mid-December. It is a fact of life that even if we received a $50 billion bridge now, and the president signs it, it will fund war operations only through about the end of February. And so we would be back in this situation immediately after the Congress reconvenes in late January.
A final point, I make these comments solely as the person charged by the president and the Congress with administering the Department of Defense. The high degree of uncertainty on funding for the war is immensely complicating this task and will have many real consequences for this department and for our men and women in uniform.
(Read the whole transcript here.)
