Shock and Audit: The Hidden Defense Budget

What the Pentagon really spends. Part 1 of a <em>Mother Jones</em> special report.

Photo by flickr user <a href="http://www.flickr.com/photos/soldiersmediacenter/2002021485/" title="View on Flickr">Army.mil</a>

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This is Part I of a Mother Jones special report on the defense budget. Click the links for Part II, III, IV and V.

The Defense Budget That Dare Not Speak Its Name

Somewhere in the middle regions of Barack Obama’s Herculean to-do list is a task that’s defeated many of his predecessors: taming the runaway Pentagon budget. Earlier this year, to much fanfare, Obama and his defense secretary, Robert M. Gates, released a Defense Department budget proposal that slashed several troubled weapons programs and promised further reforms to combat rampant waste. But although the press touted the proposals as bold and ambitious, they sounded suspiciously like the basic budgeting tips a financial adviser would dispense if you’d lost total control of your personal expenses. The essential principles were:

  • Keep track of money that comes in and goes out
  • Don’t buy things you don’t need
  • Don’t buy things that don’t work
  • If you do buy something that doesn’t work, don’t order 200 more of them

Unfortunately, Washington pols have been saying similar things ever since the Defense Department was created. And over the years a nearly constant procession of blue-ribbon commissions and special taskforces and congressional crusades has attempted to tackle the problem and failed. (See, for example, the Fitzhugh Commission, the Grace Commission, the Nunn-McCurdy Amendment, the Packard Commission, the Carlucci Initiatives, the Defense Management Review, the National Performance Review, the Bottom-Up Review, the Federal Acquisition Streamlining Act, the Federal Acquisition Improvement Act, the Acquisition Streamlining Task Force, Total System Performance Responsibility, and the spiral development and capabilities-based acquisition initiatives.) Cost overruns for major weapons programs now total $296 billion. We could never afford this rampant squandering of public money, but now, with the economy in crisis, the need to end the Pentagon’s profligacy has become even more urgent.

But will Obama’s attempt at reform be any different from all those that have gone before? Over the next few weeks, Mother Jones will attempt to find out. We’ll dig into the gory details of Pentagon spending and watch out for porky shenanigans as Gates’ budget makes its way through Congress. We’ll take you behind the scenes to meet the key players who will determine whether the Pentagon cleans up its act or continues on with business as usual. Above all, we promise to do our best to make it interesting. You can read our reports here; if you have tips or questions that you want us to chase up, send them to rmorris@motherjones.com.

The Hidden Defense Budget

This year Obama asked Congress for $534 billion to fund the Department of Defense. That’s a lot of dough. But the real amount that the US spends on defense is actually much higher.

The Office of Management and Budget calculates a total for defense spending throughout different parts of the government (it includes money allocated to the Pentagon, nuclear weapons activities at the Department of Energy and some security spending in the State Department and FBI). In the 2010 budget, that figure was $707 billion, more than half of the government’s discretionary spending for the year. (Discretionary spending is the money that’s appropriated every year by Congress, rather than entitlement programs like Medicare for which funding is mandatory).

Source: Office of Management and Budget

But the real number is even higher, because, among other things, the OMB doesn’t count supplemental spending on the wars in Iraq and Afghanistan. We’ve combed through this year’s budget documents to add up military-related spending throughout the entire government. Here’s what we found:

Pentagon budget 534 billion
Extra appropriations for military personnel 4.1 billion
Iraq and Afghanistan supplemental funding (fiscal year 2010) 130 billion
Iraq and Afghanistan supplemental funding (fiscal year 2009, yet to be signed into law) 82.2 billion
Nuclear weapons and other atomic spending
(Department of Energy)
16.4 billion
Military and economic aid to Iraq, Afghanistan, and Pakistan
(State Department)
4.9 billion
Security, counterterrorism assistance, and military aid to foreign countries, including the Middle East and Israel
(State Department)
8.4 billion
Coast Guard spending in the Department of Homeland Security 583 million
Total defense spending throughout the government 780.4 billion

As you’ll see, we leaned on the conservative side here by only counting money that’s directly related to military activities. We didn’t, for instance, add in money for the Department of Veterans Affairs ($55.9 billion), which would take the total to $836.3 billion; or the rest of the Department of Homeland Security ($54.5 billion), which would take it to $890.8. (The wider national security apparatus isn’t included either—budgets for the intelligence services are classified.) If we did include these extras, here’s what the difference between the official budget and the real one would look like:

Research credit: Taylor Wiles

Special Report: Shock & Audit

(Links will go live as reports are published.)

WE'LL BE BLUNT

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The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

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WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

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