A 2.8 percent military pay raise and a reduction of thousands of civilian personnel were included in the 1998 Defense Authorization Act approved by House and Senate negotiators Thursday. The bill also calls for increased incentive pay for military pilots and a change to the rule governing privatization at military depots.
The bill authorizes $268.2 billion in military spending, $2.6 billion over President Clinton's budget request. About $46 billion was allotted for weapons procurement, $3 billion more than the president requested. While the conferees provided the full administration request for the FA-18E and F, F-22 and Joint Strike Fighters, they cut funding for development of the Navy's arsenal ship from $150 million to $35 million.
Conferees said that infrastructure downsizing has not kept up with force downsizing. The bill reduces active-duty personnel by 20,000 in 1998--11,000 from the Navy and 9,000 from the Air Force. It also calls for a 25 percent reduction, about 12,500 personnel, in headquarters management and support personnel. Reductions would be phased in, with five percent coming in 1998 and another five percent reduction each fiscal year through 2002. The department's acquisition workforce would be reduced by 25,000 positions in 1998, though the secretary of Defense is given permission to waive the cut.
Recent reports of DoD's problems retaining military pilots prompted the conferees to authorize bonuses of $25,000, up from $12,000, for aviators with more than 14 years of service. Increases would be retroactive to Oct. 1, 1996.
The bill also changes the long-standing 60/40 rule, which requires 60 percent of depot maintenance work to be conducted by federal employees, to 50/50. That means 50 percent of depot work would be eligible for privatization.
The bill will now be considered by the full House and Senate.
Other highlights of the act include:
- Several family-friendly provisions to improve benefits for military personnel and their families, including higher separation allowances when service members are stationed away from home, more money for family housing, $32 million for seven child development centers and increased funding for the Defense Health Program.
- Additional money for recruitment advertising.
- Army drill sergeant selection and training reform, including psychological screenings and a revised evaluation system.
- Permission for Defense agencies to bypass the Defense Automation and Printing Service for printing work.
- A requirement that 90 percent of purchases under $2,500 be made using government purchase cards by Oct. 1, 2000.
- $11.5 billion for Energy Department military programs, down $2.1 billion from the president's request.
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