[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS FOR 2017 ---------- Friday, February 26, 2016. OVERSIGHT HEARING--QUALITY OF LIFE IN THE MILITARY WITNESSES SERGEANT MAJOR OF THE ARMY DANIEL A. DAILEY MASTER CHIEF PETTY OFFICER OF THE NAVY MICHAEL D. STEVENS SERGEANT MAJOR OF THE MARINE CORPS RONALD L. GREEN CHIEF MASTER SERGEANT OF THE AIR FORCE JAMES A. CODY Statement of Chairman Dent Mr. Dent [presiding]. Well, good morning. I welcome everyone to today's hearing on military quality of life-- service members. Today's hearing is on the quality of life for our enlisted soldiers, sailors, marines, airmen, and their families. I think the four men seated before us really do represent, the heart and the back bone of the United States armed forces, and we thank you for your presence. The four witnesses at the table are senior enlisted members of the respective branches. Members should know that we have roughly 120 years of combined military experience before us today, and two of our witnesses today were only on the job for a matter of days when they appeared before this subcommittee last year. And now they have gotten a year and a few days under their belt, so we welcome them back. And this hearing is just a great opportunity to identify areas where we can do more to help those who protect us and defend this Nation. I don't have anything else I would like to add at this moment except to recognize my friend and colleague, the ranking member, Mr. Bishop, for his opening remarks. Statement of Ranking Member Bishop Mr. Bishop. Thank you very much, Mr. Chairman. And let me welcome these distinguished military career folks here. They are the folks that really, really take care of our soldiers, sailors, marines, airmen, and we appreciate you very, very much for what you do: Sergeant Major Dailey, sergeant major of the Army; Master Chief Petty Officer Stevens; Sergeant Major Green; and Chief Master Sergeant Cody of the Air Force. Let me give a special shout-out to Master Chief Petty Officer Michael Stevens and Chief Master Sergeant Cody. I know this is your last time coming before our subcommittee, and I want you to know that we appreciate your honest assessments regarding our enlisted personnel and what they face and wish you the very best in your next assignment or retirement, whichever it is. I will keep my remarks short so we can get directly to the hearing. I always look forward to this hearing because you give us the best picture of what is needed for those who are really on the front lines. We talk a lot about facilities, equipment, force structure, strategy, but it is the men and women like you that really make our military what it is today. I believe that our service members and the support of the family members, too, make our military great, and it is our responsibility to make sure that all of you--the active duty, Reserve personnel, and their families are taken care of. And I want to make sure that we are doing enough to help our service members and their families because the last thing they need to do when they are facing a deployment is worry about what is happening back home. In all of your testimonies you raised many issues that confront your services, such as family services, retention, readiness, and training. And I want you to use this as an opportunity to tell us what we have gotten right, what we need to improve to ease the burden that is placed on our service members and their families. So thank you for your service. And I yield back. Mr. Dent. Thank you, Mr. Bishop. And I would like to at least introduce our witnesses today. Starting from my right is Sergeant Major of the Army Dan Dailey. And most importantly, he is from Palmerton, Pennsylvania, just north of my hometown. And Sergeant Major Dailey is a returning witness. His wife Holly is also in attendance. Sergeant Major Dailey was sworn in as the 15th sergeant major on January 30, 2015; 27 years of service; enlisted in the Army in 1989, attended basic training and advanced individual training at Fort Benning, Georgia--place near and dear to your heart, Mr. Bishop. And Sergeant Major Dailey's awards include the Legion of Merit and a Bronze Star Medal of Valor. Thanks for being back here, Sergeant Major. Master Chief Petty Officer of the Navy Michael D. Stevens-- as Mr. Bishop said, this is his last appearance before us and we wish him all the best in his future endeavors, wherever that me be. And who knows, maybe Pennsylvania. Master Chief Stevens is a returning witness. His wife Theresa is also in attendance. And I just wanted to mention that he was appointed on September 28, 2012, becoming the 13th master chief petty officer; 33 years of service; entered the Navy straight from high school in 1983. Master Chief has served as wing command master chief for the largest helicopter wing in the U.S. Navy, most recently served as 16th fleet master chief for the U.S. Fleet Forces Command. Sergeant Major of the Marine Corps Ronald Green, who was I think 5 days into the job when he came before us last year. Sergeant Major Green is a returning witness. He assumed his current post as the 18th sergeant major of the Marine Corps on February 20, 2015; 31 years of service; he has served as drill sergeant and master drill sergeant at Parris Island. I pity those poor guys who had to deal with you. [Laughter.] But he served at two three-star commands, a rare distinction for rank. He served at Marine Corps Forces Europe and Africa and Stuttgart, Germany in 2010. And, of course, Chief Master Sergeant of the Air Force James Cody, and this is also his last appearance. And we appreciate your presence here. We always like to point out that he was well-trained. His wife is in attendance as well, and is too a retired Air Force chief with over 25 years of service. Appointed in January 2013 as the 17th chief master sergeant; 32 years of service; entered the Air Force in 1984. His background includes various duties in air traffic control at the unit major command levels. He has served overseas in Germany, South Korea, Turkey, and deployed in support of Operations Southern Watch and Enduring Freedom. Thank you all for taking your time to be with us here today. Without objection, your written statements will be entered into the record, and please feel free to summarize your remarks in about 5 minutes each. So I guess we will start from right to left, starting with Sergeant Major Dailey. Thank you all for your statements. Statement of Sergeant Major Dailey Sergeant Major Dailey. Chairman Dent, Ranking Member Bishop, distinguished members of this committee, I want to thank you on behalf of myself and my comrades for allowing us the opportunity to speak with you today. On behalf of more than 2 million members of our Army team and its leaders, I would like to recognize this committee for its continued support in defending and advancing all facets of Army quality of life. We are especially grateful for the $974 million in fiscal year 2016 funding for military construction. These authorizations and appropriations resulted in tangible quality of life improvements, including the $19 million Noncommissioned Officer Academy at Fort Drum, New York. This complex will provide the Army's NCOs a state-of-the-art facility to further develop the leadership skills and professional standards expected of our Army's young leaders. We aren't officially at war today. But right now as we stand, more than 186,000 of our soldiers are in support of our combatant commanders in over 140 countries. They are preventing, shaping, and winning for our Nation. Although our force is getting smaller, our mission has not changed. The Nation has asked our Army to perform a diverse number of missions over the last year, requiring a force prepared for anything anytime and anywhere. Maintaining our readiness, as the Army chief of staff has said, is our number one priority. And there is no other number one. We build readiness by filling the Army formations with soldiers of character, competence, and commitment--soldiers who are mentally, emotionally, and physically fit to withstand the rigors required of members of the profession of arms. In my opinion, we can be best supported with readiness by: keeping faith with our greatest asset, the American soldier; increasing and incentivizing deployability; maintaining standards and discipline; and expanding our professional development improvements. I hope to have the opportunity to share some of those initiatives with you today. Ladies and gentlemen, I do believe that our soldiers are the best-trained, best-manned, and best-equipped force in history. It is essential that we maintain this consistent and predictable resourcing to stay that way. We must remain committed to providing this great Nation the most capable and lethal force imaginable--not only to win, but to deter any potential adversary. But caring for soldiers, families, and our civilian workforce is nonnegotiable for me and the thousands of leaders that I represent here today. Caring for our people builds trust, and trust is built with honesty and predictability. This is the unwritten contract between the American people, her leaders, and the people of our Army. My biggest concern in the delicate balance of building a quality of life for our soldiers and families that enables readiness is how they will experience the cumulative effects of budgetary decisions designed to bring a cost savings to the military. Fiscal conservation is our duty as leaders in public service, but it is hard to explain program and compensation cuts to a young soldier and his or her family. Whether actual or perceived, these things affect how they view our decisions. I have visited dozens of installations throughout the last year and I have spoken to thousands of our soldiers and their families, and they ask me why. We have to ask ourselves, is the value of these cuts worth the potential impact to our soldiers and their families? They are still deploying and they are still separating from their families, and we have to be cognizant of the fact that chipping away at the Army family's wallet could violate the trust the soldier has in us. It could jeopardize their trust. And we expect them to be committed to the mission that we direct them to do, we owe it to them. Being good stewards of our Nation's fiscal resources does not mean that we should do so at the expense of our soldiers. We are asking to--for them to give their all. We have to keep faith with the men and women who make up our total Army family. With the continued support of this committee, trust can and will be sustained. These soldiers, our Army professionals who make up today's all-volunteer Army, stand ever ready and willing to answer the Nation's call because they believe in each other. They believe in you and they believe in me. We must ensure our actions and decisions always reinforce that trust. This committee's support, I am sure, will do just that. This we will defend. Ladies and gentlemen, thank you for your time and I appreciate your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Sergeant Major Dailey. And, Master Chief Stevens. Statement of Master Chief Stevens Master Chief Stevens. Good morning, Chairman Dent, Ranking Member Bishop, and distinguished members of this subcommittee. It is a great honor to be here with my wife Theresa and address you in my fourth year as the Master Chief Petty Officer of the Navy. There are currently over 600,000 active and Reserve sailors and civilians serving in our Navy today. Their commitment to our Navy and our Nation is a never-ending source of inspiration. Without our sailors' can-do spirit and determined initiative, our operational readiness simply could not exist. Our sailors and their families collectively make up our most critical weapon system--a weapon system that operates most effectively when individual and unit morale is high. I truly believe that if this weapon system is not operating at its highest proficiency, your Navy becomes far less--far less capable. We owe it to our sailors and their families to ensure they continue to be well prepared to safeguard our Nation. We owe it to them to provide them with education, training, and appropriate compensation for their service and sacrifice. We owe it to them to hold the line when budget pressures put their quality of life and quality of service at risk. Over the past 3 decades there have been significant improvements in pay raises, housing allowance, health care, and veterans' benefits, resulting in a quality of life that is commensurate with their service. Many of you have worked hard to get us where we are today, and it is my hope that your hard work will not be in vain. Although the nature of budgetary reform is to balance readiness with quality of life, sailors are apprehensive about actual and potential reductions regarding pay and compensation. Through the years, military and civilian leadership has worked hard to establish and maintain trust with our sailors. Now we have to work hard to preserve and nurture that trust. Outside military pay and compensation, one of my greatest concerns is single sailor housing. Although we monitor barrack safety and prioritize funds for facilities most in need, we are not recapitalizing unaccompanied housing at the rate in which it is degrading. As we prioritize military construction projects to enable operational readiness, we have difficulty meeting the requirements for infrastructure, such as barracks and support buildings. The necessary investment in shore infrastructure remains challenging, but it is important for us to remember that our sailors rely on these installations for operational support, training, and quality of life for them and their families. If we start to invest now in improvements in this area, the less costly it will be down the road. It is my hope that Congress continues to provide the needed relief without needing to move money out of operational readiness accounts in the future. Although these concerns exist, fleet manning remains healthy and continues to improve. Health care continues to be extremely important to our sailors and their families. Our stateside and overseas military treatment facilities are essential to ensuring our sailors and their families have access to comprehensive, high-quality health care services. Our family programs continue to provide fundamental support that our sailors require to succeed in their personal and professional lives. Our sailors and their families appreciate your support in this area and wanted you to know how important these programs are towards their total quality of life. When a sailor is deployed and the spouse has to work to help make ends meet, having a daycare with extended hours makes all the difference in the world to manage everyday life while apart. sailors that are deployed for 7 months at a time are more focused on the mission knowing that their spouse and families have help available if anything unplanned was to come up while they are away. Having resources such as an ombudsman or a counselor accessible to the spouse makes getting through a deployment more manageable and less stressful for both our sailors and their families. And for these benefits, we thank you. We can never take for granted the sacrifice that our sailors and their families make. It is absolutely critical to the future of our Nation's defense that we do everything in our power to hold the line and provide our sailors and their families with the best quality of life we can offer. On behalf of these amazing sailors and their families, I thank you. We thank you for the opportunity to address you today and very much look forward to answering your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Master Chief Stevens. Sergeant Major Green, you are recognized. Statement of Sergeant Major Green Sergeant Major Green. Yes, sir. Chairman Dent, Ranking Member Bishop, and distinguished members of the committee, thank you for the opportunity to appear before you today and update you on the quality of life of your Marine Corps and our families. First, I would like to thank you for your fidelity to the United States Marine Corps. The commandant, General Neller, and I continue to travel around the globe visiting our marines and families, and the morale is high. The Corps continues to maintain its operational readiness and commitment to the Nation by remaining forward-deployed and ready to respond to crisis anywhere in the world without any hesitation or mental reservation. You and the American people expect marines to answer the call and to win battles. In 2015 your marines executed approximately 100 operations, 20 amphibious operations, 140 security cooperation events, and 160 major exercises. We have accomplished these requirements while sustaining a tenet of measured and responsible drawdown. We are keeping the faith with our marines by minimizing involuntary attrition and maximizing voluntary actions. The Corps has not seen significant issues with recruiting or retention and continues to attract and recruit the best and most qualified individuals. We will continue to maintain a force of the highest-quality people who are intelligent, physically fit, resilient, and disciplined. General Neller and I spent Thanksgiving and Christmas visiting our forward-deployed warriors, and they are doing a great job. You would be proud of them. There are presently over 33,000 marines deployed around the globe. And despite the drawdown in Iraq and Afghanistan, the enemy continues to try and impose their will and their way of life on our Nation. Your Corps continues to accomplish the mission by changing their minds or their zip codes. Our families remain resilient and committed to supporting the warfighters as they work to accomplish the mission of guarding the country and our way of life. The Corps recognizes that we have a drawdown and continue to shape our quality of life programs and reflect those changes. As we near our end-strength target rapidly, the funding levels continue to eat away at our readiness and force the commandant of the Marine Corps to accept risk in unit readiness, personal readiness, and family readiness. All three are tied directly to the quality of life. The Corps should not have to make decisions between quality of work and quality of life. The Marine Corps works hard every day to take the fight to the enemy and make the fight as unfair as possible. Thank you for the opportunity to appear before you this morning, and I welcome your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you. Thank you, Sergeant Major Green. And we will go to Chief Master Sergeant Cody. You are recognized. Statement of Chief Master Sergeant Cody Chief Master Sergeant Cody. Chairman Dent, Ranking Member Bishop, and members of the subcommittee, thank you for the opportunity to be here today and for your interest in the quality of life of our service men and women. I sincerely appreciate the opportunity to represent America's airmen and their families. It is an honor to express their needs and offer appreciation for your support on their behalf. Chairman Dent, I appreciate you acknowledging Athena's service. She continues to serve, and certainly I wouldn't be able to do it without her. And I would also like to take a moment to have you recognize a brand new senior enlisted leader for our Air Force Reserve Command. Chief Master Sergeant Erika Kelly has just taken over in that position, so she is going to be a valuable asset to our team. Today your airmen serve in unprecedented times. After 25 years of constant combat operations they face a dynamic, unpredictable future, and a increasing desire to rely on airpower. They serve in the smallest, oldest Air Force in our history but continue to provide the preponderance of combat force against our adversaries around the globe. The poignant words of the Air Force Chief of Staff, General Welsh, should not be lost on any of us: Quantity has a quality of its own. There is no doubt today's airmen are the most talented, educated, and experienced force our country has ever assembled. They are professional men and women who are proud to serve but remain concerned as fiscal restraints limit their capacity to accomplish the mission and erode a compensation they earn in service to our Nation. During my 3 years as Chief Master Sergeant of the Air Force, limited budgets have forced your Air Force to cut its manpower by nearly 24,000 airmen. However, combat operations around the globe have remained steady for our Air Force in some areas while escalating in others. As of this January there are 24,000 airmen deployed worldwide and more than 205,000 airmen directly supporting combatant commanders every single day. In that same time period, diminished budgets have forced slowing of normal growth in compensation and have continually cut at our airmen's buying power. If the Budget Control Act is not repealed and current trends continue, our projections show that compensation for an average E-5 with dependents stationed in or near Washington, DC, will fall behind private sector pay in 2018 and behind increases in household expenses in 2021. As we continue to implement these reforms and measures, including changes to retirement, basic allowance for housing, TRICARE, and more, we must never lose sight of the full impact of our airmen's readiness and resilience as well as our ability to recruit and retain your all-volunteer professional force. The airmen who serve today do so freely, proudly, and voluntarily because they believe in what America stands for and are ready to defend its cause. But our Nation must honor that commitment by providing for them and their families. I believe you have had a chance to read my written statement, which I have submitted for the official record. It includes greater details on our efforts to invest in infrastructure and key family programs, though there is clearly more we could offer our airmen and families with a higher top- line budget. It outlines recruiting and education initiatives, including our effort to develop a bachelor's degree program for enlisted airmen and other concerns of our airmen and families, such as recent proposals to eliminate basic allowance for housing for married couples and airmen who choose to live together. I would like to add again for the record that I strongly oppose any such proposal, as it penalizes a military member. Basic allowance for housing is an individual entitlement that comes with military service and it should not be taken away for deciding to marry or live with another brave volunteer. I thank you again for the opportunity to provide insight into the quality of life of our airmen. I appreciate your continued support for our brave airmen and their supportive families and for your commitment to protect the quality of life initiatives they need to confidently defend our Nation. Our airmen are counting on each of you to lead our Nation and ensure we have the resources to remain the world's greatest air force. I look forward to answering your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Chief Master Sergeant. QUALITY OF LIFE CONCERNS We always have one perennial question at this hearing, and it is what would you say are the top three quality of life concerns of enlisted personnel in your service branch? And I know in the past we have talked a lot about housing, barracks, child care centers, health care, wounded warrior care, dwell time. I am just curious to see if any of the priorities have shifted. And maybe we will start with the answers from left to right. We will start with Chief Master Sergeant Cody and move in the other direction. Chief Master Sergeant Cody. So, Chairman Dent, thank you. I think number one on the concern area for our airmen and their families right now is compensation. It dominates almost every conversation we have with them when we visit in the fact that they see the slowing of their growth and the reduction in their buying power. And there is nothing in the foreseeable future that would indicate to them that that is going to stop. So as they balance their ability to continue to serve their Nation as a family, that is a major concern. They worry about the impact on readiness and exactly whether we will have the resources to continue to do what we are being asked to do. As I expressed in my opening comments, our real demand signal for airpower has not diminished. Arguably, it has increased while the size of our force has significantly decreased over this past 25 years. So that, you know, levies a lot on them. And then the things that you mentioned still remain a concern. Adequate child care, housing are major concerns to them as they are moved around the globe, and having access to those resources are important. Mr. Dent. Sergeant Major Green. Sergeant Major Green. Yes, sir. Sir, the most important things to the marines and families--as the commandant and I travel around. The number one thing--question that is being asked right now is the blended retirement system, because they understand the system that we are on sitting at this table, but they don't fully understand what is going to be in the future for them. The marines that are in now will have a choice--most of them will have a choice, either one system or the other. And January 1, 2018 the system is supposed to, you know, be the system that we are on from then on. And I know we are pedaling away trying to get that information out there, but it is very important. It is absolutely important as we change the system to something we have no control over. And that ship will take a long time to turn if we get it wrong. For everybody that is going to retire under that new system, that is a question that we are really trying to answer for them. The commandant has an unpaid priorty list. Barracks is a part of that, structures--there are 24-hour gyms, all the quality of life programs that are challenged by readiness. Because I continuously say, you know, you can't separate unit readiness, personal readiness, and family readiness. So the budget that we have been handed does not support everything that is in the backpack. It just doesn't. It just doesn't. And we must make A's on the battlefield. We have to make A's on the battlefield. So that leaves the commandant with some challenges with quality of life programs: child care, Basic Allowance for Housing minus one. You know, we understand that 61 percent of our $23.4 billion go toward paying the warriors and supporting all the benefits, and there is only $9 billion to do everything else--operations, modernization, research, technology. All those things we look at holistically. We look at holistically, sir. And the $1.2 billion that is lost from the budget of last year to this year, it affects all quality of life in the Marine Corps. Yes, sir. Mr. Dent. Master Chief. Master Chief Stevens. Well number one, I believe, Mr. Chairman, is the resources to do their job. We call that quality of work--having the parts, the tools, the right weapons, the systems that are necessary to effectively carry out their mission. So we are doing a pretty good job of that but we are having to move some monies around to make that happen so we are assuming risk in areas like quality of life, understanding that that is necessary. Number 2 is this potential or this discussion that we have been having for the last 3 years on pay and compensation. Some of it has occurred and some of it has not. But in the minds of sailors and their families when I go out and talk to them, if this discussion is happening at very senior levels they feel that it is just a matter of time before it actually occurs. So there is the perceived and then there is the actual, and it creates a level of anxiety that is not healthy for the force. So that would be number two. Number 3, as I mentioned in my oral statement, is our inability to keep up with our shore infrastructure repairs, such as barracks and work facilities and things like that. In order to ensure that we are meeting a--the mandate of what I identified as number one, which is quality of work, we are having to move monies out of these areas so that they can do the mission. It is not something that is in the spotlight. You know, shore infrastructure is not in the spotlight so it doesn't get a lot of attention. But one of these days we are going to wake up and we are going to realize that we have got a disaster out there and we have got more to do than we have got money to do it with. So I just caution us to not take our eye off the shore infrastructure ball. Thank you. Sergeant Major Dailey. Chairman Dent, the Army's concerns are aligned with the priorities of the chief staff of the Army, and the reason why is because that is where we need to always maintain our focus. Number 1 is the total force readiness. Today I am represented not just by myself but the National Guard sergeant major, Sergeant Major Brunk Conley; and Command Sergeant Major Jim Wills, from the Army Reserve. And as we draw our Army to a historic low, just 980,000 in 2018, readiness will always be our number one concern. And that is where we need to focus our attention because we do need predictable resourcing in order to make sure that our soldiers are prepared to do the mission we ask them to do. Number 2 would be the future of the force. We have got to look beyond the next few years and we have to look out many years. You have heard the secretary--the chief and the secretary of defense say that, and that is true. We have potential adversaries out there that we have to maintain focus on, and the future of the force requires, again, consistent and reliable resourcing in order to make sure that we stay well above the pace of our adversaries. And then our third priority, which is in line with the chief's priorities, is our soldiers and families. They are our Army. I am represented here today by my wife, but she also is a representation of the--part of the 2 million-person team that makes up the Army. It is not just soldiers, but it is families and our great civilian leaders, and they trust us that we will maintain pace with the resourcing we need to be able to make sure that they can take care of their families while our soldiers are doing the things that we ask them to do. I share similar concerns with each one of my senior enlisted advisors to my right, is that our soldiers aren't asking for much. We just need to be able to find them the necessary resources they need to accomplish their mission. Mr. Dent. Thank you, Sergeant Major. At this time I will recognize the ranking member for his questions. BENEFITS Mr. Bishop. Thank you very much, Mr. Chairman. I appreciate very much your comments about your priorities, but whenever I meet with service members and military families they inevitably mention being concerned about the changes to their benefits. So I just want to ask each of you, has the continuing discussion over the changing military benefits impacted morale? And what are you really hearing from your soldiers, marines, sailors, and airmen? And what factors should we be considering as this issue continues to move forward? Because I know that as I--I happen to co-chair the Congressional Military Family Caucus, and these are issues that families are talking about, the--erosion of benefits and, quote: ``perks.'' How is that impacting and how do you predict it will further impact recruitment, retention, and morale? Each service member, with the changes proposed in the retirement package, is going to have to assume a great deal of responsibility for planning for his or her retirement--making investment selections, choose their monthly contribution percentage. And that is going to require a great deal of financial literacy and training on the part of the various services. FINANCIAL LITERACY FOR SERVICE MEMBERS So in addition to the first question I asked, I would like for you to describe, each of you, what your services are doing at this point to implement the requirement for creating the necessary financial literacy for the service members and their families. Chief Master Sergeant Cody. I can go first, Congressman Bishop. I think we are actually all part of--all the services are part of a working group right now where we are trying to figure out exactly how we are going to do that continuum of financial education. I think all the services do some financial counseling today, but it is in a much--very--it is in a different context completely--basically how do you not spend more money than you have today and live within a budget, not how do you plan for the future. And I think you eloquently kind of identified what our real challenge is when you think about the preponderance of our force and where they are coming into the military and what their level of education would be, and how do we make sure we get that right up front. I think the working group is addressing all of the concerns that you kind of laid out. I think it is too early to say what we will be then able to do, right? You take all those recommendations. We will see how you would execute that throughout the continuum of service in our military to at least give the best opportunity for our service members to make the right type of choices. But as you kind of state, choices are just that. Some people will make good ones; some people will likely not make good ones, and that could end up in the end having a detrimental effect on what their retirement would actually be worth. So I think that is right. And again, I think you hit it. That is why I brought it up as the number one concern I hear about compensation and eroding growth. We shouldn't shy away from the conversation. It is going to and is having an impact on retention. Mr. Bishop. The recruitment, retention, and morale. RECRUITMENT, RETENTION AND MORALE Chief Master Sergeant Cody. Yes. So the morale is tied to retention, I think. You know, people have low morale because they don't feel they are being adequately compensated or they think that they are not going to be adequately compensated. And we are asking their families to sacrifice in that same vein, right? We talk a lot about the spouses and their employment. That goes to overall income in the household, how we move our folks around and the things that we ask them to do, so they are taking deductions there in many, many cases. And then, okay, we tell him we are not going to grow your pay at the same rate that it would normally grow or the law allowed for. All of that is a factor. Do I think it impacts recruitment. It is tough to tell because we are doing okay with recruitment also, but you have to pay attention. The fact is, though, a lot of those people that serve are our best recruiters. If they are not talking to people about the advantage of service and the overall package and how this is a great way of life and a good thing to do for your Nation, it has a negative impact I think. Again, we are doing okay today. It is hard to say long-term what that will have for impact. Mr. Bishop. Sergeant Major Green. Sergeant Major Green. Yes, sir. First morale, sir. I alluded to, you know, the three types of readiness: unit, personal, and family. For marines, marines want to deploy. They want to be on the side of contingency or crisis. You know, when they can't deploy the morale begins to be low because the budget cuts that we are facing, as I alluded to earlier, the commandant and having to make choices about ranges, training areas, the technology and resources. Because the marines want to know when we go to the fight, like I said earlier, there is no fair fight. There is no fair fight. They want to make it as unfair as possible. And when we have to take cuts in modernization; equipment can't be reset, refurbished; can't sustain the barracks, that is a draw on personal morale. It is. It is. And we owe them the very best. Recruiting? Recruiting, like the Air Force, it is great right now. We want to make sure it stays that way, because we can look back, you know, pre-9/11. We put a lot of money into the war, lot of lives lost, lot of warriors come back, families torn apart and everything. Just want to make sure that you know all we have accomplished over the last 14 and 15 years. We are not trying to go back with a budget to pre-9/11, because nothing to date costs what it did pre-9/11--nothing. Some things have doubled and tripled, and that needs to be recognized. And there are warriors out there and family members who absolutely need health services. Health services. And, you know, to see the budget cut--and our Wounded Warrior Regiment, we are going to keep the faith with our wounded warriors and their families first. We are going to do that. But what are we not going to do? What are we not going to do? We want to make sure we are retaining--you talk about retention--we are retaining the most qualified marine, not just marines. We want to make sure that the marines--we put out-- every year, sir, one out of four marines that came in 4 years ago will leave the Marine Corps. We are only going to keep one out of four. Want to make sure we have a choice to keep the best of the four, the most qualified marine. Thank you, sir. Yes, sir. That was it, sir. Yes, sir. Mr. Dent. Thank you. At this time I would like to recognize Mr. Valadao for 5 minutes. TRANSITION AND LIFE AFTER SERVICE Mr. Valadao. Thank you, Chairman. Thank you, gentlemen, for your time today. And I don't want to change the subject too much because of--obviously compensation is something that plays a huge role in this, but there is something that did come up quite a bit on my trip to the USS Ronald Reagan and spent some time with our sailors, and it has to do with their life after service and training, job opportunities. And I know that was mentioned a little bit with some of the things that Chief Master Sergeant Cody mentioned in his comments. But I would like to ask Master Chief Petty Officer, can you discuss the Transition GPS as well as how you see opportunities to better help out in the transition process and hopefully lower the unemployment rates for post-9/11 veterans? Master Chief Stevens. The current transition assistance program, Goals Plans Success, is far better than what we have had in the past. I have personally had the opportunity to attend it a few months back. It still needs some work, but the good news is we recognize that through course and class surveys, and each time they go back and make the necessary adjustments for this process to get better. We call it the spiral concept--you learn as you go, and as long as you are making those adjustments based on what you are learning then you will be better in the end. What I would really like to focus on--and I would ask that we give this serious consideration--is we need to do a better job of credentialing across the services. It is something that I think I have mentioned or we have talked about for 4 years now. It is very difficult, I understand, because there are federal credentials; there is state and local credentialing. And it can become difficult, and there is a lot of bureaucracy behind it. But if we could find a way across the department and across the Capitol Hill to come to some agreement where we could at least tackle some of these credentialing issues in the macro, because what I will--what I would recognize is the Army will be doing something, the Air Force is doing something, the Navy and the Marine Corps, but we are not doing much together as a department. So if we could do a better job with that I believe that might--makes our service members far more marketable when they go out into the civilian sector and into industry. Because oftentimes that is what they want to see--what are, you know, what are your credentials? And these service members have the experience and the knowledge and the know-how, but it doesn't always translate to civilian credentialing, and in order for it to happen, many times they want that service member to go back through the very same training that they have already received and have the practical job application experience that they already have. And it is money out of the G.I. Bill; it is money out of their pockets; it is time. You know, when they get out of the service they need to go to work. They got families to support and they don't always have time to spend another 2 years in school working part-time. I really believe we can do a better job. I just haven't seen a concerted effort to tackle credentialing. We are doing a pretty good job in the education piece, but not a really good job in the credentialing piece. Mr. Valadao. Would any of the other three like to add to that? Sergeant Major Dailey. I would, sir, if I could, Congressman. And again, thanks for the opportunity to address this issue because this is something the Army has invested heavily in for the last several years, and as MCPON Stevens says, we are very passionate about. We have made great strides. The Army has become 88 percent compliant with the VOW Act in the last 3 years and we have had great help from Congress, and making great strides with regards to credentialing and helping our great communities recognize the value of our service member--men and women that leave our service. But I agree with my counterpart. There is a lot more that we can do. But as a result of our efforts together, we have seen some great improvement. Since 2012 to 2015 the Army alone has reduced its nonemployment compensation from over $512 million down to $250 million, so that is a tangible result of the amount of result that we can receive from just small inputs to this. And I agree with MCPON Stevens. An area that we can advance this even further and reduce that $250 million down even more with a small investment in things like credentialing, ideas that we have to look outside the scope of what we do now. We gotta open our aperture on things like tuition assistance and allow our young men and women who deserve those credentials--the great skills that they hone while they are soldiers, sailors, airmen, and marines can be added upon with these credentials and they will be more valued service members when they transition, become soldiers for life in the future. And it is a small investment. A lot of times these credentials cost anywhere from $150 to $500. And there is no reason that we can't invest in them, because we have proven that investing in them now is a great investment for us in the future. Mr. Valadao. Thank you. I think my time is up. Mr. Dent. Thank you. At this time I would like to recognize Mr. Farr, for 5 minutes. Mr. Farr. Thank you very much, Mr. Chairman. I am very interested in this dialogue on compensation, which you indicate is really a high priority, with low morale. And I really do think we have to have a national dialogue on it because I think what--and I wonder if you have the tools to respond to the military families and sort of put that into comparison. Because what I find is that we are sort of the--you know, everybody who is--in my area it is livable wage, can't afford-- minimum wage in California is way ahead of the rest of the country. You are speaking to a Congress that won't improve the minimum wage in America. It ought to be $15 an hour to survive. But when you also put it in context, I can't believe that the private sector could really lure away people. I mean, you have got--and we are talking about it. We have got a lot of benefits here. The private sector doesn't offer the child care provisions that you do. The private sector doesn't offer free access to clinics for uniformed personnel or a TRICARE kind of program for spouses and children, certainly nothing like a welfare morale account that soldiers could take advantage of for discounts. I mean, I am totally for you, but I don't--I think that it is unfair for somebody to say it is just not enough. I mean, Congress members haven't had a COLA--not a COLA--in 10 years. Talk about the morale here on, you know, salaries. And our retirement--I am going to retire after 22--26 years of Federal service and the retirement is $60,000. People think we make tons of money. It is not a lot. And so I think that--but on the other hand, when we go to recruit for people in our offices, during the boom nobody wanted to work for the Federal Government because the salaries were so low; but now people are lining up for the jobs. Salaries are the same, but the benefits that the government pays are so much better, so--particularly for working moms, they love the federal job. I wish we would put this into a real national context because I think the anger out there the voters are expressing, sort of hating government, is because they don't understand the pros and cons here of what it is. That is just my opinion. I think we ought to put it into context, because if any soldier comes to me and says, ``You know, I think we--that you guys are shortchanging us,'' I will say, ``Yes, we are not doing enough. On the other hand, you are not going to get a better benefit going and working for IBM.'' Now, the question I really wanted to get to was I would like to help you in your professionalization of enlisted personnel. And, you know, I represent the Defense Language Institute and I am very interested in your concepts or your ideas on asymmetrical threats of--now is the time when we really have to understand the languages and, more importantly, the cultures of other countries. And should we be allowing the senior enlisteds into programs like--into the Naval Postgraduate School, which is usually an officer candidate school, or AFIT, or DLI--Defense Language Institute, for those kinds of training--professional training in languages and culture? Chief Master Sergeant Cody. Congressman Farr, if I could, I---- BASIC ALLOWANCE FOR HOUSING Mr. Farr. One last question--I just want to throw this out there for staff and everybody. The discussion here about lowering the BAH? You know, we entered into contracts with the private sector to build all the community residential housing and that contract promised that contractor for 50 years that they would be able to collect the BAH, and no one told them, ``Hey, we are going to be changing that formula.'' What is that going to do to the---- Chief Master Sergeant Cody. Puts it at risk. Mr. Farr. Yes. Chief Master Sergeant Cody. Significant risk to those programs. Mr. Farr. Well, aren't there contractual obligations there that can't be violated? Chief Master Sergeant Cody. They will get their money. The problem is they won't recapitalize as necessary. That is the way the contracts were written. So the way it is written and the structure of it, there is a built-in amount of that BAH that goes to recapitalization. That is exactly where they will take it. They will sustain their ability to fulfill, you know, their obligations to their employees and their investors and everything like that, but it will in turn not be able to sustain a 50-year program because the recapitalization won't take place. That is at least how we are being--you know, as we had the dialogue with them with these discussions. Mr. Farr. Mr. Chairman, we ought to just take that issue and try to get the BAH to move because it is going to require billions of dollars. Chief Master Sergeant Cody. If I could respond to your comment, sir, and then I will certainly agree with you about what you are talking about the opportunities for education and language-enabled airmen, specifically for my thing. But I think you are absolutely right, we need to have this conversation about compensation about those that serve their country. But let's have the real conversation on what we are asking them to do. Because we are not asking everybody at IBM to travel the globe and put themselves in harm's way and come back a different person for the rest of their life and their family to have to contend with that. If we want to have the real conversation, let's have the real conversation and not just try to arbitrarily, you know, correlate their service, what they do for their Nation, to what anybody else does for our Nation. This is unique. It is less than 1 percent of the American population that serves their country and is willing to do what they do. So fair and appropriate compensation is the right conversation. What that is we do have to decide. I think where we have this conversation and where we struggle in talking to them is that they committed to this. You walk in and you--just like you talked, you walked into Congress knowing this is what it was going to look like. Okay. I make that commitment; that is the organization I am going to be part of. You start changing that, well now it is an appropriate conversation to say, ``What did I commit to? Is that really right?'' And our Nation can't afford to have these folks walk away, after the investment that we put into them, that the country puts into them to be capable airmen. So I think it is right to have the conversations, but in the right context also of what we are asking them to do. You couldn't be more appropriate, and we are trying to do this in the Air Force. So we are sending senior enlisted to language-enabled programs. We have them embedded in the Air Force Institute of Technology (AFIT). We have talked about this over the years as we have come before your committee, so I really appreciate your continued support and emphasis on the value of that and creating a more capable service man or woman to be able to do what our Nation is definitely asking them to do. Mr. Dent. I need to recognize at this time Mr. Jolly for 5 minutes. Mr. Jolly. Thank you, Mr. Chairman. Chief Cody, thank you for that explanation. I appreciate that. Sergeant Major Dailey, I want to follow up on a conversation Mr. Valadao had. You have been very gracious in working with me on this credentialing issue, and I think the panel would benefit a little bit from further conversation about this. ARMY UNIVERSITY AND CREDENTIALING Sergeant Dailey hosted a CODEL that I was able to lead with a lot of our state legislators and our state regulators to identify what the state of Florida could do differently to begin to accept the credentials within the state and create this more seamless transition. As part of that, I learned a little bit about what you are doing with Army University. Can you share a little bit about how Army University is going to support, ultimately, this more seamless transition of credentialing from in-service to separation? Sergeant Major Dailey. Absolutely. First I would like to acknowledge, sir, the--thank you for your support on the CODEL and for championing our credentialing efforts. And I mean that. It really helps. And I would invite anyone else out to come see the Herculean efforts that our soldiers and our transition professionals are doing at each one of our installations. But I would absolutely like to highlight our efforts of the Army University. So we believe that our Nation gives our men and women the best-quality training and experience they need to fight and win our Nation's wars. We also believe those--that training and education aligns very closely with what our Nation needs in technical fields. So for 240 years we have done just that. We have trained and readied our men and women to win, and we have given them skills at the cost of our taxpayers. But we can do a better job, because we owe it to them, soldiers for life, to be able to transition them to civilian service because--back to civilian service so they can be valued members of their communities. And it is at very low cost, as I mentioned before. It is a very small investment for a very large return--not just for the military, not just for not paying unemployment compensation, but back to the communities they will go into where they will become good citizens, taxpayers contributing to the community and valuing on the things that we have already paid for. Just this year alone the United States Army has credentialed over 30,000 soldiers with the efforts from the help of this Congress and the efforts internally to the Army. But as I mentioned before, small investment. Opening up the aperture for things like tuition assistance to allow them to use those great gifts from our taxpayers to find credentialing opportunities is an inexpensive way to continue to find value for our young men and women as they leave the service. Mr. Jolly. But allows them to essentially be recognized with credit for some of the performance and the trade skills that they have developed while in service. It now credentials them in a way that can harmonize with outside credentialing agencies. And we are still getting there, but that is the direction we are going. Is that right? Sergeant Major Dailey. Absolutely, Congressman Jolly. Mr. Jolly. I would share with the panel our Florida delegation learned a lot from something the North Carolina legislature actually enacted at the state level to help streamline this. As a result, in Tallahassee this session there is now legislation moving through at our state level to begin to accept and accommodate more of the in-service credentials for soldiers that separate. So I appreciate that. Anything this committee can do to help, certainly we stand ready. NON-DEPLOYABLE SOLDIERS Another question for you: In your testimony you state that there are nearly 100,000 soldiers who are unable to deploy and that approximately 80 percent of these soldiers are not able to deploy because of medical issues. In the context of a force drawdown to an active duty force of 450,000 and perhaps total force of 980,000 I believe is the number, 100,000 soldiers being termed ``non-deployable,'' what is that impact on our readiness and is that an issue that we need to be prepared to begin to address? Sergeant Major Dailey. Congressman, absolutely. And that number does represent the total force, 980,000---- Mr. Jolly. Right. Sergeant Major Dailey [continuing]. The active force, the National Guard, and Reserve. We have done a lot of things over several years to take care of our wounded warriors and soldiers. And as a result of that, we have, I think we have told our Nation that we represent our young men and women, and we will represent them for life if they enter this service. But we do have to be cognizant of the fact that this takes a toll on our readiness, as you explained, sir. So we are working initiatives right now to ensure that each one of our soldiers, as we draw down to the historic lows that you mentioned, sir--450,000 from an active component and 980,000 as a total force--to ensure that each one of the men and women that we remain on active duty can and are able to fight and win this Nation's wars. Mr. Jolly. And so that would mean addressing the current population of 100,000 that are non-deployable. Sergeant Major Dailey. It would, sir. Yes, sir. Mr. Jolly. OK. Sergeant Major Dailey. And we currently are doing that, I can assure you, sir. Mr. Jolly. OK. Sergeant Major Dailey. Each one of those soldiers, I can assure you, will be taken care of. This is by no means any way to not--say we are not going to take care of our soldiers. Mr. Jolly. OK. Sergeant Major Dailey. We are going to give them the appropriate care they need, but we do have to come to the understanding that it is time to transition into soldiers for life. Mr. Jolly. OK. Very good. No further questions. Thank you, Mr. Chairman. Mr. Dent. Recognize Mr. Price at this time, for 5 minutes. Mr. Price. Thank you, Mr. Chairman. I, too, want to follow up on some of the implications of the budget difficulties we have heard discussed very consistently today and the drawdown that we are anticipating. But I think it needs to be said that these budget woes are created by us. It is not like they were handed down from above. It is a very similar account to what we heard earlier this week in the Transportation and Housing subcommittee. But we passed the Budget Control Act. We passed sequestration in this body, and because we couldn't get a budget agreement sequestration kicked in. We have patched it for 2 years but we have not fixed it. And the irony is with all this--with this--all these budget woes, with all of this we are not addressing the real drivers of the deficit. So at the end of the day, for all of this cutting in both the domestic and military budgets, we are not addressing entitlement spending, we are not addressing tax expenditures. And I would think the lesson of history is pretty clear that you are not going to get ahold of your fiscal future unless you address those two elements of the budget. That is totally left out of our calculations. So we need a comprehensive budget agreement. Why is that so hard to figure out? We had one in 1990 on a bipartisan basis; we had one in 1993, Democratic heavy lifting alone. The result of all that: 4 years of balanced budgets; $400 billion of the national debt paid off; the kind of investments you are talking about rather robustly funded, and the same on the domestic side. Now I am not saying those agreements were politically popular; in fact, they were wildly unpopular--something for everybody to dislike. They included tax increases. They included entitlement cuts as well as controls on appropriated spending. But it worked: 4 years of balanced budgets and a roaring economy. We simply have not achieved that here because of the ideology that has taken hold of this institution. But we are not going to solve these budget woes otherwise. So we kind of dance around it, but that, I think, is the fact. And I just hope in the next administration, whoever it is, whatever it is, that we will revisit this need for a grand bargain because until we do that, this is going to continue to be what we face, and patching it up isn't sufficient. I took more time than I meant, but let me just ask about-- and I am following up here on the last member, the implication of some of these drawdown numbers. And, Sergeant Major, I want to follow up specifically on what you are saying. And of course we know we want to take care of these men and women in uniform with the best medical care, the best mental health care, the best rehab that we can give them, particularly if they are injured in the service of our country. But I want you to put a finer point on it if you can. Does this mean that at any given time there is a significant percentage of the men and women that are technically considered active duty but for various reasons are unable to deploy? Is there any way to be more precise about that? Are they being counted in the overall end strength figures? And then I am--I guess you have to raise the question, too, about the incentives that these pressures create for the progress we have made in this medical care and this mental health care and this rehabilitation. Are there pressures to change that somehow? You say we assure every service member that we are with them for life, but there is no question in the short run anyway there are these pressures that we need to contend with. And I would appreciate you reflecting on how we deal with this. Sergeant Major Dailey. Absolutely, sir. First, for the record I would like to say that those 110,000 soldiers may or may not have to transition, and each one of those soldiers has an individual medical concern that either temporarily or permanently disqualifies for them deploying. And there is literally that many different cases, of which we deal with on an individual basis with our medical professionals. And our hope is, because we have invested in the young men and women, is to make them healthy, get them healthy so they can deploy, fight, and win. But those do represent the total force structure and they are part of our total number. So what we are doing--and we have a part of this, too--is we are making significant changes to our medical care system so it can accurately track and address each one of those specific needs. And I can't talk about each one of the specific needs of them because they are all different. But I can assure you those soldiers that we do have to transition--and we may have to, and we are also going to have to transition about 14,000 this year who would otherwise like to stay due to the drawdown--we are going to provide them with the best care that we possibly can and we are going to take care of their needs, as we have done and as we have proven over the last 12 years of war. Mr. Price. Any of the others---- Sergeant Major Green. Yes, sir. Mr. Price [continuing]. Want to chime in on this issue? Sergeant Major Green. I would like to comment on that, sir. Our commandant, General Neller, when you talk about 7,000 less that we have that are in that position, he has told the, you know, the staff down at Quantico at our headquarters down there, Manpower and Reserve Affairs, Training and Education Command, Marine Corps Recruiting Command, ``Let's take a look at how we train both on--when we are deployed forward and when we are back here in what we--most people know as a garrison life,'' so our physical fitness test, our combat fitness test, our weight standards, our obesity charts. He said, ``Let's take an overall look at what we are doing in the pool of recruiting before they go to boot camp; look at what we are doing in recruit training, how we train; look at what we are doing to retain the marines out here.'' He is looking at human performance optimization. We have come a long way, as you said, with medical care. And we are looking at everything from the things we put in our mouth, to the machines we work out on in our gyms, to the pack we carry on our back. Because some of those injuries are caused, you know, by using equipment that is no longer--it--we have outgrown that equipment. We have outgrown it. And we have science that proves to us that we can train better. He is absolutely getting at that. And our numbers are coming down as he, you know, tackles that problem. But it still remains the fact that the number of marines that we have drawing down to 182,000. When the commandant says we need 186,000 to do the missions that you all have given us to do and we go down to 182,000, that means our dwell time is not 1-to-2 or 1-to-3; it is 1-to-1-point-something, which means, you know, quality of life--you have got to come back and rest the force. We came out of Afghanistan and Iraq and we got--we have 35,000 marines forward deployed at any moment, 22,000 in the Pacific. I mean, if you are going to--if you want us to rest the force and become healthy and that 100,000--7,000 to go away, a part of that is allowing us the time to rest, giving us the numbers that we need. The budget does not support that. It doesn't support that. So you gotta rest the force in order to do that, and you gotta modernize the force. Mr. Price. Thank you, Mr. Chairman. Mr. Dent. Thank you. At this time I would like to recognize the gentleman, Mr. Joyce, for 5 minutes. CREDENTIALS FOR MILITARY TRAINING Mr. Joyce. Thank you, Mr. Chairman. Sergeant Major Green---- Sergeant Major Green. Yes, sir. Mr. Joyce [continuing]. And Chief Cody, if you had something to add regarding credentialing, that was one of the topics I want to address. I know that there was some response from Sergeant Major Dailey and Master Chief Stevens. If you had anything else you wanted to say about that, I think it is important. I know at home, all across my district, there is employment to be had, and they are looking to employ veterans, and they want to make sure that this transition is as smooth as possible. If you had any suggestions on how we could be helpful---- Sergeant Major Green. Yes, sir. It is---- Mr. Joyce [continuing]. I wanted to give you the opportunity to respond---- Sergeant Major Green. Sir, it is a--I will be brief. It is a state-to-state, you know, conversation that needs to be had. You have some states like North Carolina where we have Camp Lejeune, you know, Marine Corps Base Camp Lejeune there. They have worked well. The state has worked well. Not every state really has an interest in this. We can't make states--they are your states; they are your constituents. You know, we can't make them come to the table. We absolutely invite them in forums like the U.S. Chamber of Commerce, Hiring Our Heroes. You have individual organizations that come in. But that needs to be addressed at a state level. The states need to have some concerns about the military people that return to the states. They need to take an ownership in that. We have the Military Apprenticeship Program, which we introduce to marines within 30 days of joining their unit. They go to, you know, a class, 7 hours, and a part of that is introducing them to COOL, the credentialing Web sites, the MEP, you know, I just talked about. They are introduced to it up front. We are aligning the MOS, about 257 out of 300 military occupational specialties, identifying all those credentialing items that we can do. So we are doing are part, sir. We just need the states to do their part. Chief Master Sergeant Cody. Congressman Joyce, I will build on what Sergeant Major Green talked about. So the credentialing opportunities online has really been producing some positive results. We have about 1,700 total licensures available, and just in last year we added a little over 900 to that. We are making progress in the right way. I think where we could really use this body's help--so continued support within your states, but as a body. It is really, how are we going to link up the DOD, Department of Labor, Veterans Affairs, and every one of these state organizations that deal with labor in those states? If we link these organizations together in a cohesive way, now you have this continuum of when we transition folks from the military through Transition GPS that these are all connected. The problem is there are opportunities out there for service men and women. They are very skilled. They are desirable. They have work ethic; they have experience. But every one of these entities work in their own way. And while we try to get the thread together, it is like--it is by happenstance; it is by ``I knew somebody''; we get a great representative that goes out there, does it, and it works for a while. So if this body--I mean, and we did it. If you really want to use a model of how we did it with every one of the states. We did it with the education. So we have every one of the states now that are acknowledging our military children, that are moving from state to state and putting them in the same place. If we give that access, if we can work through the right legislation to give those agencies access to the information that they would need to know, they can reach right out to these great men and women that have served. I appreciate your efforts to assist these service men and women. Sergeant Major Dailey. If I could just add, so---- Mr. Joyce. I wanted to follow up, because I think this is very important and you had an opportunity and they didn't have an opportunity. My father is a World War II vet who was shot and left for dead, and he believed it was his faith that brought him home. We never talked about it when we were kids, but as he was dying we were having these conversations, and we said to him, ``What was it like?'' He said you came home and you went to work. What was there to talk about? You did your job, and you came home and would work. It is important we transition people to work, because it brings me to my next point: the high rate of suicide among our veterans. I want to give you all an opportunity to discuss what it is that you are doing to help bring those numbers down, and what we can do better to help facilitate the transition from active duty to civilian life. SUICIDE AND TRANSITION Sergeant Major Dailey. I will begin, if that is okay with my counterparts here. This year was a tough year for the United States Army. We actually saw an increase in suicides, and some of that was in our Guard and Reserves. And we have been working this very hard, so this is--not go without a lot of effort put into this. Over the last few years we have expanded our behavioral health teams to greater than we have ever seen in Army history, and we have embedded them down to unit level. We have 58 embedded behavioral health teams now to give that access and to break the stigma of seeking help for mental health. But I think where we can do more and where you can help us is getting that help out to our National Guard and Reserves. Of course, they have access to all the things when they live, you know, close to a military installation. But unfortunately, not all of our Guard and Reserve soldiers do. They are dispersed throughout the United States, and we have seen a rise. And I believe that because of the efforts that we have done and we have provided at our installations, those people who are close on and the active soldiers that live there have benefitted from it. So I think that is an area that we can improve. Master Chief Stevens. The Navy is increasing--we have got these teams called operational stress control teams, and they go out to our various units 6 months prior to deployment and they sit down with the service members, the sailors, and talk to them about the stressors in life that unfortunately, you know, lead sometimes to suicide. And so we recognize that we have seen some progress on that so we have upped the ante. We are now funding more of these teams to go out to ensure that we are touching base with more of our service members. You know, the numbers are a little bit elusive. I wouldn't say we had a good year; we had a better year than we had last year with regards to the numbers of suicides. But soon as you say that then, you know, something changes and it is not as good the following year, so we are certainly not saying that we have achieved success. So we will continue to work with these operational stress control teams. We will continue to invest the resources that are necessary. We have identified some things that we believe oftentimes lead to suicide, and so we have had an initiative called ``Ask, Care, Treat,'' and then we have another initiative called, you know, it is ``Every sailor, Every Day'' or ``1 Small ACT.'' It is making sure that no sailor feels like they are ever alone, because oftentimes in between these transition points from training, or duty stations, or when somebody has a life- changing event, whether they get in trouble or lose a loved one, sometimes we forget that, you know, we need to spend time and pay attention to those people. And so we are making sure that we always have a hand on them, that we are always talking to them, and we make sure that we help walk them through these difficult times with this ``Every sailor, Every Day'' or ``1 Small ACT.'' So we are hopeful that we will continue to see improvements, but time will tell. Sergeant Major Green. So, sir, we have the Wounded Warrior Regiment, and that takes care of our wounded, ill, and injured. And they have programs like the DISC, the district injury support coordinators, that are out in America in different areas. And they are reach-back, because the problem that we are seeing is how to close the gap on the millions that have served in the uniform and they have come home with the ghosts, and we can't reach out and touch them. How do we close that gap? That is when we talk about state credentialing and tying all this together, the V.A. support necessary and the backlog there. All of this creates--suicide is the end state. It is given that everything that makes someone feel that they are not worthy to live. It is all the programs, the quality of life that we are talking about here. You know, the commandant has the Marine for Life Initiative. Marine for Life started in 2002. Everyone else adopted that from the Marine Corps. We still have that initiative going today with transition. We have to understand that there is a need to stay in contact when we say ``Marine for Life.'' We are trying to build this robust program to reach out and touch--to use our iron eyes, our recruiting stations out there, inspect the instructor stations, everybody in the civilian world, the veterans' organizations, public organizations--to reach out to these warriors. Because when they leave and they come out of that uniform, they get--they go back into a world that doesn't understand where they have been. They haven't been working for Google and Facebook. They have been fighting combat--they faced the enemy. And connecting that and understanding that, it is just--it is overwhelming sometimes. And it is not just that, you know, this year has been a bad year or that year has been a bad year. Every suicide. You know, you have seen a spike in kids in the military committing suicide, dependents. I mean, that is a quality of life that someone feels like they don't rate. That is where we are with it, with getting at suicide. Mr. Dent. Thank you, Sergeant Major Green. And let me go to Ms. Lee for, 5 minutes--recognize her. Ms. Lee. Well, thank you very much, Mr. Chairman and to our ranking member. POST TRAUMATIC STRESS DISORDER I apologize for being late. I was at a meeting at the White House, but I really wanted to get back to say thank you, first of all, for your service and for being here today. Just a little bit about a personal note on quality of life. My dad was a lieutenant colonel, 25 years in the Army, stationed at Fort Bliss. And in the day Fort Bliss was the only place that I could go to a restaurant because of segregation; it was the only place I could go to the swimming pool; it was the only place we could live in a house during that period that was a really lovely house. And so I just wanted to say quality of life issues, just coming from the daughter of a veteran, I remember the day when the Army provided the quality of life for my family that we otherwise would not have had. And so thank you very much. Couple of things I want to raise, just in terms of PTSD. My background is psychiatric social work, and I am really concerned about an article that I read in the New York Times. Mr. Chairman, I would just like to put this in the record and ask Sergeant Major Dailey about this. And I want to just read a bit from this article. This has to do with Kristofer Goldsmith, who was discharged from the Army at the height of the Iraq war in the hospital after attempting suicide. After coming home he--on his first deployment his duties were photographing mutilated corpses. After coming home, he was stalked by nightmares and despair. In 2007 he overdosed on pills and his platoon found him passed out in a grove of trees at Fort Stewart, Georgia that had been planted to honor soldiers killed in combat. Now, instead of screening Mr. Goldsmith for post-traumatic stress disorder, or PTSD, records show that the Army wrote him up for missing his flight, then forced him out of the military with a less-than-honorable discharge. When he petitioned the Army to upgrade his discharge, arguing that he missed his flight because of undiagnosed PTSD, it rejected his appeal. Years since he has appealed twice more for an honorable discharge, has been denied both times. So how are you looking at discharges as it relates to dishonorable discharges, for example, that occur when really it is PTSD that is service-related and there is--there does not seem to be the system in place that will allow the veterans or the personnel to really, you know, have the benefit of the doubt and argue the case that whatever took place was as a result of a service-connected PTSD? Sergeant Major Dailey. Yes---- Ms. Lee. And I would like to put this in the record, Mr. Chairman. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Without objection, it will be---- Sergeant Major Dailey. And, Congresswoman Lee, I can't talk to the specifics of the nature of the article you referred to. I would, you know, have to take that for the record. So I can't talk to those specifics. [The information follows:] The Army Review Boards Agency (ARBA) considers requests for upgrade of General and Other Than Honorable (OTH) discharges. Additionally ARBA (and its subordinate boards) can upgrade punitive discharges (Dishonorable and Bad Conduct discharges for enlisted Soldiers, and Dismissals of commissioned officers) imposed pursuant to a court-martial sentence. The Army has fully implemented the November 3, 2010 Secretary of Defense supplemental guidance, directed to Boards for Correction of Military Records (BCMR), for discharge upgrade requests for Veterans claiming PTSD. ARBA has further applied the Secretary of Defense's guidance to the Army Discharge Review Board to ensure fair and consistent treatment regardless of when the veteran served, focusing on veterans who served before PTSD was a recognized diagnosis. Evidence of PTSD can be provided from service records, a VA diagnosis, or a civilian mental health provider. The boards exercise caution in upgrading discharges when the misconduct was of a serious nature or was premeditated. But I can talk to the specifics of what we are doing now and the specifics of the nature of the issue that you are talking about. So first and foremost, the Army takes behavioral health and the injury to our soldiers very seriously. I am among those men and women that have deployed for 5 years to combat, and I take it very seriously. So firsthand I know the experiences. Firsthand I know the challenges associated with looking and doing the things that you described that young man had to do in combat, and I can assure you this leader is critically focused on the health and the welfare of our young men and women. I am also responsible for their discipline. So I understand that we have to balance the care of our soldiers, but I also have to ensure that this Nation is protected by men and women who are members of the profession, uphold standards at all times, and they represent and are held to a higher standard than the people that they are paid to protect. So it is a delicate balance. But what I can assure you, before any soldier now that is discharged, they are carefully reviewed, especially if they have behavioral health, by both a medical professional and the chain of command to ensure that all of their medical benefits-- health needs are met and that there is not a confrontation between the discipline and the behavioral health problems they have. I can report that in 2015 less than 1 percent of the people who were discharged had PTSD, so I can tell you--I can assure you that we are taking care of our soldiers. And we are reviewing each one of the cases that were alluded to in a recent article, around 22,000 of them that were discharged with behavioral health issues, and the secretary of the Army--the acting secretary of the Army will release that review here very shortly. Ms. Lee. So you are reviewing those to look at possible other factors, such as PTSD, that could have been responsible for a dishonorable discharge? Sergeant Major Dailey. We are. Ms. Lee. OK. Thank you, Mr. Chairman. I think that is very important to get on the record also, because that is a lot of--those are a lot of people. Sergeant Major Dailey. They are a lot of people, yes, ma'am. I agree. Ms. Lee. You know, and---- Sergeant Major Dailey. And they are our soldiers. Ms. Lee. And they are soldiers. That is right, and---- Sergeant Major Dailey. They are our soldiers, yes, ma'am. Ms. Lee [continuing]. And they deserve this. So thank you very much, Mr. Chairman. Mr. Dent. Thank you, Ms. Lee. Mr. Bishop. Mr. Chairman, may I just interject something? Mr. Dent. Absolutely. Mr. Bishop. Back a few years ago the Surgeon General of the Army came back with a report to the Defense subcommittee that basically concluded that any soldier that was deployed in theater for a minimum of 2 weeks had some incidence of PTSD. Sergeant Major Dailey. Congressman, I am not familiar with that---- Mr. Bishop. But I am just--that was the conclusion that was reached. So every deployed service member is likely to have some degree of PTSD; some is greater than others. So the impact on conduct that Ms. Lee is referring to and is referred to in the article is very serious because, you know, in our case work we have applications to review all the time and we are submitting that. And if the folks who are doing the review have been there for a while and are not fully familiar with the impact of PTSD, that will result in a denial when it probably is actually service-related and probably should be upgraded--the discharges. Mr. Dent. Thank you, Mr. Bishop. At this time I would like to recognize Mr. Fortenberry, for 5 minutes. Mr. Fortenberry. Thank you, Mr. Chairman. Gentlemen, good morning. Pleasure to see you all. Thanks so much for your service. Thanks so much for your enthusiasm. The chairman and I were sharing a comment a moment ago and it really--the heart of it is this: Where does the strength of America come from? We don't reflect on that a whole lot. We really don't. And it doesn't come out of Washington policymakers; we should be reflective of that strength. It comes from values. And how are values formed? They are formed in family life and faith life and through institutions that have solid tradition, that have a vision, that have a mission, that are self-sacrificial in nature, leading our minds and hearts to higher things. You represent that. You are one of the few institutions left in the country, frankly, with a pervasive effect of bringing people to a set of values that has deep meaning and purpose, so I want to thank you for your sacrifice. In that regard, what we are talking about is absolutely essential: How do we keep soldiers, marines, airmen, air personnel for life, being part of that military family and upholding this great tradition? So I want to walk through a series of questions with you, but first I want to commend Mr. Jolly, my colleague, for what he did in Florida. I am very interested in this. I think we had a conversation last year in the hallway and---- Sergeant Major Dailey. We did. Mr. Fortenberry [continuing]. We talked about some of the dynamics in Nebraska. I want to make sure we are harmonizing everything with your transitional programs, so can you come? Sergeant Major Dailey. I will, sir. Mr. Fortenberry. OK. Sergeant Major Dailey. I will. Mr. Fortenberry. Perfect. We will set that up with you. We have got certain Department of Labor programs for veterans in the state, many businesses very interested and acclimated toward hiring veterans, several universities doing different things. I just want to make sure it is harmonized, that we are all pulling the same direction and effectively leveraging it. Sergeant Major Dailey. And if I could make a statement to that---- Mr. Fortenberry. Yes. Sergeant Major Dailey [continuing]. Ladies and gentlemen, when you help us in these efforts it makes a difference. It makes a difference. It is a stand that our civil leaders support the things that we are doing and it literally makes a difference. When Congressman Jolly comes to events like that he brings people, and people listen because you are their representatives. So I appreciate if each one of you could find time to highlight--come see the great things that our soldiers do. And I know many of you already do, but I would appreciate it if you could do that because it does advance our efforts-- our collective efforts to take care of our service members. CREDENTIALS FOR MILITARY TRAINING Mr. Fortenberry. Well, let's figure out a pathway to get that done. This issue of transition is so critical to the well- being of so many people. I want to explore a little bit this issue of credentialing. I think you talked extensively about it. I assume all branches have this process, but what exactly does that mean? I don't want to spend too much time on it, but again, how that is harmonized. Or is the credentialing itself in the military actually being seen by employers as a new standard that meets acceptable general standards that come out of academia or other institutions? Let me put them all on the table and then you can address these as we go through. I don't want my time to run out. TRICARE for Life--in the current health care construct children can stay on their parents' health care bill till 26. That is not the case in TRICARE, as I understand it. Is that correct? Chief Master Sergeant Cody. Twenty-five until--if they are going to school. Mr. Fortenberry. If they are full-time students. Chief Master Sergeant Cody. If they are full-time students they can be--continue to be carried on until that---- Mr. Fortenberry. So that is the stipulation? Chief Master Sergeant Cody. Yes, sir. Mr. Fortenberry. OK. Is that an issue in--I think some-- what the point ought to be is I think somebody ought to do the analysis on this because I didn't vote for the current health care bill--I need to make that clear--but one of the aspects of it that I thought--I think is reasonable is keeping children on the parental health care plan longer, and it actually may end up saving the entire system money. Younger people are healthier; it replenishes pools. So I think it would be interesting to see if this could be an enhancement of the quality of life issue for families and actually save some money. So if there is a possibility of any of you could analyze that. MARINE CORPS COMMUNITY SERVICES Is your recruitment strong? And then, Sergeant Major Green, you referenced the military resale system as a significant employer of military families, and I want to learn more about that. Sergeant Major Green. You say the resale system, sir? Mr. Fortenberry. Yes, in your testimony. Sergeant Major Green. Oh, yes, sir. Yes, sir. Mr. Fortenberry. I assume that is commissaries and---- Sergeant Major Green. Yes, sir. Yes, sir. Mr. Fortenberry. OK. Sergeant Major Green. Yes, sir. You know, the Military Compensation and Retirement Modernization Commission had an initiative in there to join commissaries with exchanges. The value of our commissaries, of course, is the savings. You know, people may live--marines families may live somewhere far from the base because that is where they choose to live, but they absolutely shop at the commissary. The resale value of getting the goods where they need to go overseas, and what we are going through with commissaries not being successful, not producing enough to keep their doors open. The Marine Corps has a program--just the Marine Corps alone has Marine Corps community services. It is tied to our exchanges. If we join---- Mr. Fortenberry. That is a brilliant idea. Sergeant Major Green. Sir? Mr. Fortenberry. That is a brilliant idea. Sergeant Major Green. Well, to join them together? Mr. Fortenberry. Well, I don't have the working vocabulary that you have so I am generally---- Sergeant Major Green. Oh, the Marine Corps community services? Mr. Fortenberry. Yes. Sergeant Major Green. Yes, sir. We are the only ones that have the MWRs encased in that. Marine Corps community service is tied to an exchange. Mr. Fortenberry. Try not to use acronyms. I know it is tough---- Sergeant Major Green. Yes, sir. Yes, sir. Yes, sir. Mr. Fortenberry [continuing]. In the military, but---- [Laughter.] Sergeant Major Green. Marine Corps community services are tied to exchanges, and the exchange system for us produces a profit to make up in child care funding. Mr. Fortenberry. But again, think about that Marine for Life, the tie of the family, giving people opportunity and proximity to where their loved one is, participating in the mission. I have actually also proposed expanding commissary benefits for veterans. Sergeant Major Green. Yes, sir. Mr. Fortenberry. You could start with disabled veterans. I would like for you all to entertain that prospect. And I have more, Mr. Chairman, but my time is up so I will come back to it later. Mr. Dent. We can go into a second round of questioning here. Obviously we are not voting till I think closer to 11:30, so we can try to go through the second round or until votes are called, whatever comes first. So I just have a few more questions I wanted to get into as we are talking about quality of life issues. It has been a very interesting discussion. I think, Sergeant Major Green, you said at one point during the discussion this morning--you talked about individual readiness, unit readiness, and family readiness---- Sergeant Major Green. Yes, sir. Mr. Dent [continuing]. I think is what you had said. And I think all other branches concur. RATE OF FORECLOSURES But do you and this is open to any of you--do you track the rate of foreclosures--I want to get into housing--foreclosures among military homeowners, and are you hearing of any service members who have a permanent change of station and are unable to sell their homes at their prior stations? Are you hearing anything about this? I am just curious, you know, how this economy is affecting recruitment, retention, how is it affecting your ability to sell homes when you have to move about? So if anybody wants to take a stab at that? Sergeant Major Green. I will take a first stab, sir, since you highlighted my name. You know, in the height of the war in the beginning, when the bubble burst in 2008 and before, that was a huge problem because we were, you know, permanently change of station, PCSing Marines at the same rate. Once we began to understand that, we began to work with the monitors more and talk about what financial situation families are in. And that is really what it comes down to, sir. It comes down to leaders knowing their people, knowing the marines and the families of the marines, trusting that the leaders have their best welfare and their best interest at heart, and that when you see someone in that situation you are going to provide an avenue that is going to make them most successful--not just permanent change of stations just to be doing it or, ``It is your turn to go.'' We have to stop and actually realize that that is a human being, a family that is making a move. And we have closed that gap tremendously, sir. Mr. Dent. Well, thank you. Any other services want to chime in on that? Chief Master Sergeant Cody. I agree with Sergeant Major Green. We had a significant issue with that when the housing boom kind of---- Mr. Dent. Yes. Chief Master Sergeant Cody [continuing]. Floor fell out and there was some legislation passed that provided some relief for service men and women and families. I don't want to say it is not an issue at all; it is just not the issue it was. There are still---- Mr. Dent. OK. So it is better than it had been, but---- Sergeant Major Green. Yes, sir. It is just better. The issue is there. Mr. Dent. Yes, it is there. It is not as bad as it was a few years back, but--okay. Now I am going to probably get into some dangerous territory here because I am going to ask you to speak for your spouses, some of whom are here today. And it really has to do with this--you know, we are talking about family readiness. Do you track the employment rates among military spouses, and are those rates going down, or are you hearing anecdotal evidence of a lot of military spouses losing their jobs? So I don't want--I am asking you to speak for your spouses, but hey, I wouldn't object to them chiming up for themselves if they have any anecdotal evidence. What are you hearing on that front? Sergeant Major Green. I will go first, sir. So my wife, she is a registered nurse and every state has a licensing process. I honestly think it is a money racket because medicine doesn't change from state to state, so why should she have to license? And she has sat on some of the military boards and voiced this. Why should she have to relicense when we move from California to Virginia? I mean, what is that all about? And we are doing that to families, you know, all around the Nation. And the employment rate--you know, transition--spouse transition is available also. STARS--Spouse Transition Assistance and Readiness, within the transition program. STARS is built in there. In the Marine Corps we utilize that not only for transitioning spouses, but we have programs for spouses to-- once they check into their installation they can go right away and get that help from Marine Corps community services, that unique thing that we have. So we do visit that, sir. We don't track per number, but we offer every family that opportunity to have that knowledge. Sergeant Major Dailey. I would just like to make a comment on the impact of what you just described has on our soldiers and their families. Like you mentioned, I don't believe we do but I will check for the record, and I will take that for the record, if we track spouse employment rates. [The information follows:] Yes, installation Employment Readiness Program (ERP) managers track military spouse hires and report findings monthly to an Army Community Service database. However, spouses are not required to provide their employment, so the data are not totally accurate. Anecdotally, ERP managers have heard that military spouses can lose their jobs when Soldiers return from deployment. Spouses ask for two weeks off to spend time with their Soldiers, but are often turned down; therefore, they may choose to stop working. Child care issues are another reason spouses leave their jobs or are not able to seek employment. Additionally, military spouses quit their jobs when their Soldiers are reassigned to new duty locations. The Office of the Secretary of Defense Military Spouse Employment Partnership (MSEP) tracks military Spouse hires by Service on a monthly basis. The MSEP connects corporate America with the talented pool of military spouses, brings together partner employers and the military Services to offer long-term career opportunities to military spouses, providing them with opportunities for portable employment. What I can tell you, though, is that is a factor in what we all describe for our young soldiers, sailors, and airmen and marines as they do PCS. The American family does have a little bit more of a luxury than what our soldiers, sailors, and airmen do, and that is stability. It is able to capitalize on things like buying a home, you know, being able to have a spouse's career and not having to move around all the time. And these are the challenges we assume--we assume ourselves and we sign up to do this. But it is a factor. The factors, those are the hidden compensation things that we don't compensate soldiers for. It is called equity. Equity in a home. Equity in a community. Equity in a soccer team. Equity in a spouse's career, because many American families today both household members do work. And it is a challenge, I can tell you just from my spouse, moving around and even working in the DoD, it is a tough challenge. Nobody's fault but our own, because we chose this lifestyle. And Congress has done a lot to help us with that in the past, but I think that we should take a look at that because there is an area here where I think we can help with things like licensing and making them equal across all states. Not just nursing--we have done a lot of work there, but same thing for credentialing for our spouses. And our Soldier for Life transition centers are also opened up to our spouses in the Army too, as well. Mr. Dent. Yes. Mr. Bishop. Chief Master Sergeant Cody. Chairman Dent, if I could just---- Mr. Bishop. Would you yield for just a moment? I just want to make sure that you are aware of the Congressional Military Family Caucus and our partnership with the first lady's initiative and with Blue Star Families, that does a survey every year. And we just released a survey about a month ago on the needs of military families. And spousal employment and credentialing for spouses as well as for transitioning service members is a big issue. And we have been actively involved in that, trying to get uniform laws passed by state legislatures so that those licenses will be transferrable. I mean, it is not just nurses. You have got cosmetologists, you have got insurance people, real estate folks---- Mr. Dent. Commercial licenses, truck drivers. Chief Master Sergeant Cody. Chairman Dent, we actually do have the Military Spouse Employment Partnership, which is exactly what Congressman Bishop is talking about from the White House, a huge program that really has produced great results since June of 2011, honestly, the program was kind of put into place. We have a little less than 300 companies that are partnered with that. We do track how many spouses have been matched, to those jobs. And then we have the spouse education opportunity, where they get that credentialing online. So there is some great effort there. But to both sergeant majors' point, there is still a gap there. The gap is as we move them it takes time. Sometimes they are not long enough to get there; sometimes they know we are not going to be there long enough to hire them, right? You are not going to be in the neighborhood that long. So this effort is producing some pretty significant results when you think about how many people have been hired. With 547,000 jobs posted out there, this is a pretty good program to have available to our spouses. We just have to continue to link that with every state and those opportunities. Mr. Dent. Thank you, Chief Master Sergeant. And I recognize Mr. Bishop, for 5 minutes. Before I do, just going to mention that I am notified that we may have votes as early as 11:10, maybe as late as 11:25, so, you know, we will do 5 minutes each but try to keep your questions as quick as possible and your responses as short as you can make them. So thank you. Mr. Bishop, you are recognized for 5 minutes. Mr. Bishop. Yes. Mr. Chairman, you asked about the foreclosures, and I think the sergeant major referred to the PCSing. We did have a program called the Homeowners' Assistance Program, which was utilized quite a bit during the heat of deployments, where there were PCSes and families were moved where they had a mortgage and they moved from one side of the country to the other, or wherever, and had a home that was not sold and had two mortgages. And this program was made available to assist the service members. And it is my understanding that we have sort of downsized if not closed that out now. So I thought it was an interesting question to find out if there is still a need for it. But that was one of the elements of assistance that families could get. And, of course, they were severely penalized even more so than civilian families when the bubble hit. And that is, I think, a very, very important issue. And, of course, the Congressional Military Family Caucus is involved with that. WOMEN IN COMBAT Let me shift gears for a moment and ask Sergeant Major Green and Sergeant Major Dailey to talk about the issue of women in combat. The secretary of defense, I think, has sort of made it clear that women will be eligible for all combat jobs. The Army, I think, has pretty much moved forward with that. There has been some resistance on the part of the Marine Corps. The commandant of course has to comply, but there has been somewhat of a concern. And so I wish I could get both of you to address it. I attended the graduation of the first two women from the ranger school at Fort Benning and, you know, everybody was very, very proud of their service, and their colleagues felt like they were just as prepared as any other ranger who ever finished the ranger school. I understand that the Marine Corps had some difficulty with the individual officer's course graduation for some women and has sort of put a hold on that. So could I get you to address that? Because obviously it impacts career promotion and progression, and we really would like for there to be equal opportunity in all of these areas. Sergeant Major Dailey. So the Army started this several years ago, and we invest in it heavily to do the research and analysis and to create one situation: Make every organization and every job in the Army open on a standards-based irregardless of gender, race, religion, sexual preference, anything. I think that we have done a phenomenal job at doing just that. Fifty percent of our Nation is women, and I think it would be an injustice to offer or close anything that someone who wanted to do and was physically able to do. And we proved through our research analysis that there are women that can and are willing to fight in our combat arms. And I am confident, and the chief has tasked me, to make sure that we maintain standards in those organizations, because at the end of the day this is about readiness. It is about readiness of our soldiers being able to fight and win our Nation's wars. And I can assure you that the standards are and will be maintained. As you saw outside--representing us outside Fort Benning, Georgia there, those fine women who graduated ranger school met and achieved the standard. Sergeant Major Green. Sir, the secretary of defense gave us marching orders: On the 1st of January all MOSs will open up and there--the six final loadbearing MOSs, ground combat MOSs, they are open as well. MARINE CORPS FORCE INTEGRATION When I came in a year ago this conversation was at its heated moment. Talked to the secretary of defense and the secretary of the Navy. Wasn't about keeping women, you know, out of those MOSs. First let me say for the record, this conversation is not about women in combat. Women have been in combat for a long time and when you say that, women feel offended because we have had numerous women die in the uniform in combat. The conversation is about those MOSs, those loadbearing ground combat MOSs that are the toughest ones. Their standards are tough. The only thing we ask is that we do not change the standards. We have had women go to infantry officer's course. Not Officer Candidate School--women are there. So you have to go there to see the difference in the two. There is a lot of conversation going on, but very few people have visited. I don't think anybody in the room has visited every recruit training of all the services except myself. And if one of you all have done it, correct me. So I have seen firsthand over the last 3 months how everyone trains. Let me tell you, when you say ``Marine Corps, be most ready when the Nation is least ready,'' and we put a standard to something, do you want to change the standard is the question. Because if no female gets through IOC--because it is available, but do you like the product that we are producing on this end right now? If you like that product then you are not going to tell us to change the standard. Are you going to challenge the standard is the question. Why would you challenge the standard? Because challenging the standard would get at making it an even fight. Those six MOSs are open now. Any woman can come into it. But here is how it works: In order to put a private, an E-1, in to infantry, the loadbearing MOS, the marine that looks in, kicks the door in, looking to be killed--it is not about the woman. It is about making sure the 7 percent of the female marines that we have are successful, that we maintain 7 or more percent. Because if you throw them in right now on day one the average male marine--recruit in boot camp--can do 12 pullups when they hit the yellow footprints on day one. The average female American that goes to recruit training can do zero to one. That is the average. What we wanted was time to study and make sure we are setting all marines up for success and that we are not touching, you know, combat readiness or effectiveness. So in saying that, we raised the Ground Combat Element Integrated Task Force. We are the only service that took the time to study this because we have the most to lose. We have the most to lose in this because we have six MOSs that have never been opened up to women. You can't just say throw them in there. You have got to have a cadre of senior enlisted and officers to be there when they get there. Now, here is what the female marines say for the most part--the ones that are serving now, ``Wait a minute. Why are you changing this?'' I am talking about infantry right now, all three, the one that we asked not to open along with combat engineers. We just give marines orders to those MOSs. They go to the battalion level. They put on a pack, 100-plus pounds, and they march 25 miles to get tested for combat readiness. Those were all males. Those were all males. We want to know the effect--what effect is that going to have on a female? Physiologically and biologically we are different, and no one in this room can do anything about that. We have to have time to study that. So the Ground Combat Integrated Task Force, we submitted that. A lot of people didn't listen to it. We can break it, but let's not break it. Give us the time to get it right, is what the commandant is asking. Mr. Bishop. Yes. I wanted to ask you that because I wanted to give you an opportunity to give that explanation. Sergeant Major Green. Yes, sir. Mr. Bishop. And I appreciate that very much because none of us wants to change the standards. We want marines to be marines regardless of gender. But I wanted you to have the opportunity to give that explanation as to the difference between the ranger training, the Marine individual officers' corps, and why it is that the Marine Corps has had some concern. Sergeant Major Green. If I could just say, sir, ranger is-- you can be in the Army and go to be a ranger, you can come as, you know, in the process, the accessions. In the Marine Corps infantry that is a military occupational specialty that you are going to live the rest of your life. They are two totally different things. Mr. Dent. This is a very interesting discussion, I must say. And I know, too, that a lot of our soldiers and marines and others coming back from warzones come back with musculoskeletal issues. You know, you mentioned carrying a lot of weight and it is a conversation we are going to have to continue to have here. Given the time restraints, I am going to ask that we go 2.5 minutes each, if that is okay with each of the members. So I am going to recognize Mr. Valadao, then Mr. Price, Jolly, and then Joyce, okay? Mr. Valadao. Well, I will have some questions for the record. Obviously there are a lot of very important issues. One that I know was touched on while I was gone: commissaries. They play a huge role, and so I am going to want to know what each one of the branches can do, understanding that location makes a difference as far as rural, how close they are to communities and shopping and how much of an impact there is on our enlisted, our soldiers', our sailors' pockets. I mean, this is something that affects their daily lives and the resources that they are given. I had the honor to actually visit Iraq and Kuwait over Christmas and spend quite a bit of time with some of our troops, and one of the things that was brought up was the ability to contact their homes and their families via Internet. And a lot of them are relying on local services. And I understand the need to conserve resources and not put a huge infrastructure in place to provide Internet, but it was something that I found very interesting and obviously an impact on quality of life for these folks and being able to communicate is important. And one of the things I did find interesting was that quite a few folks had the opportunity to reach out and actually wish their families a Merry Christmas and throughout the holidays, and that is something that does play a huge role. LEMOORE NAVAL STATION HOSPITAL I have the honor of representing Lemoore Naval Air Station, and it is something that is very near and dear. I hear about it quite a bit--just in the last 2 weeks I had a few tele-town halls and it came up in both, and it has to do with the hospital there at Lemoore. And when I was out on the USS Ronald Reagan, again, I had a chance to talk to just a few sailors by myself and get an idea of what they are struggling with, and a lot of the issues that were brought up today were brought up, as well, but the hospital is one that they all nodded their head in agreement with and is a very big deal to a lot of those folks. And I would like to ask Master Chief Petty Officer Stevens about what is going on there. I know that they have cut back on the emergency room services and delivering of children-- maternity ward, and I know it is no longer 24-hour service. But as things are changing, as the base is growing, what are the opportunities there to serve these and to make sure that as our guys are deployed they know that their spouses and their families are being taken care of with the hospital there on the base? And if anybody else wants to add to that at the end, happy to take it. Master Chief Stevens. Well, as the size of the base or the capacity, with the Joint Strike Fighter coming in, as that changes and populations increase there is always the opportunity to revisit and see what is the, you know, the best application of the hospital there in Lemoore. The hospital itself has great capacity. What they are trying to do right now is balance the cost and the proficiency aspect with the doctors and the nurses and the technicians. So if you were to fully staff that hospital with its capacity or its capability, the doctors, the nurses, and the technicians there wouldn't get the sets and the reps that they need to maintain the proficiency that is necessary for them. So what they do is they load-share with the hospital out in town, so some of the emergency room services, child delivery, and things like that, folks can do some of that out in town and they can do some of it on the base. So that way they are able to have the right number of patients coming through to maintain proficiency for the doctor. You wouldn't want to have a heart surgeon that does one open- heart surgery every 6 months be your heart surgeon. And so what you gotta do is make sure that you find the right balance between the capacity of the hospital and the number of patients that are coming through. But again, as the hospital--because the hospital has that capacity we bring more people in there. All they gotta do is start plugging in more doctors and nurses and technicians and they are able to sustain the necessary care. So just trying to find the right balance between cost, capacity, and doctor capability. Mr. Valadao. Just for the record, my nephew was born at that hospital so that is actually something that is very personal. So again, thank you, Chairman. We will have some questions for the record. So thanks for your service. Mr. Dent. Thank you, Mr. Valadao. Let's go to Mr. Farr now for 2.5 minutes--2.5, yes. We are going to be voting any time now. Mr. Farr. Well, thank you, everybody. I thought I would just tell the committee a true story about going--out to Bethesda--I mean at Walter Reed to the rehab center there with my brother-in-law, who was trying to talk to military--he is-- my brother-in-law is totally disabled but he has watched disability golf and trying to get accessible carts on military golf courses. And we ran into a wounded warrior coming back from Middle East in a wheelchair named Tammy Duckworth. She came into the room just lit up, you know, like a--everybody said, ``Wait 'til she comes in.'' And so I was asking her, she said, ``I guess you want to know how I lost my legs. I was trying to, you know, bring a helicopter down and couldn't figure out why my feet didn't work.'' And she said, ``Because I didn't know it, I lost my legs but I was able to land it.'' I said, ``Well, what happens now?'' And she said, ``Well, I am going to get my prosthetics and I am going right back. I am going right back.'' So I asked the officer standing next to her, ``Is that possible?'' He said, ``If she can''--she is going--she wants to go back to be an instructor, not go back to--as a warfighter. He said, ``If she can pass all of the requirements, all the physical requirements, she can go back.'' She didn't pass them. She is now a congresswoman. So unintended consequences. Anyway, I just want to thank all of you for your service. And particularly, you know, we have a tradition in this committee where we certainly listen to the combatant commanders and everybody else at the high rank, but I think this is one of our favorite moments of these hearings to really listen to the enlisted--the men and women of our services and what you do for them. You speak the voice of the community, and I really appreciate that. So I just want to--I do think, in all due respect, we need to also, as we defend the needs for these benefits, we also need to sort of be proud of them. And I don't think we should be afraid of telling people, ``Look, you have given service. You are going to--you got these,'' and the private sector ought to hold up to this stuff. America right now--and this is--I am just really worried about us, this whole discontent that is showing itself. And of all, what is--who are the most popular candidates out there? The ones that are dissing government. Well, military is a big part of government. So if you are dissing all of it you are going to be dissing all the members of that family. And we have got to do a better job, us as politicians, of selling the benefits of government rather than just saying that government is the problem. And I think you are role models for helping us sell it well. Thank you. Mr. Dent. Thank you, Mr. Farr. Let me recognize Mr. Jolly for 2.5 minutes. SINGLE SAILOR HOUSING Mr. Jolly. Thank you, Mr. Chairman. For the MCPON I am going to give the floor to you to make your best case here. I know your strong concern over single sailor housing. You mentioned it in your testimony; we have talked about it, as well. What does this committee need to attend in a perfect world as best as we could? Given limited resources, how can we do better for the young men and women in the Navy for single sailor housing. Master Chief Stevens. Well, as I mentioned in my opening remarks--and I need to be clear because I have discussions with the Navy's most senior leaders and they know my passion on the single sailor housing, and they said, ``MCPON, as you talk about this please don't ask people to ask us to move money from operational accounts to the housing account,'' right? Mr. Jolly. I understand. Right. Master Chief Stevens. And so again, this is something if we don't address it now it is going to be a huge problem later. So roughly 50 percent--just slightly less than 50 percent of our single sailor housing is inadequate right now. And the pace in which we are recapitalizing and building new facilities is in no way keeping up with what is necessary. I just think we have to really take a hard look at this and what we are going to do in the future, because otherwise we are going to wake up and we are going to have a bill that will be impossible to pay. And I would submit that that is probably going on with all of the services to one level or another. Mr. Jolly. Yes. Master Chief Stevens. We have been moving money out of our shore infrastructure to our operational accounts out of necessity, and if we continue to do that we are going to be hurting. And these shore infrastructures play a vital role to our operational readiness. It may not be the alligator closest to the canoe, but it certainly plays a vital role, so we need to take a hard look at that in the future. Mr. Jolly. So 50 percent inadequate. Describe in 30 seconds ``inadequate.'' Convey to us what designates single sailor housing as inadequate. Master Chief Stevens. Well, so DoD's goal is that 90 percent of all the housing--and I forget the day; I think it is 2018--but 90 percent of all the single sailor--all the single service member housing should be at 80 percent on a scale from 0 to 100 percent. And so right now 50 percent of our housing is below that 80 percent. We used to do it differently. I am not sure why they changed it. I think it is kind of semantics, but we used to do it in a condition of readiness, and one and two were considered to be, you know livable, and three was kind of livable, and four was inhabitable. So I would say that, you know, probably 70 percent or below you are getting close to the inhabitable level. So we are nowhere near where we need to be right now. Mr. Jolly. All right. Thank you very much. Thank you, Mr. Chairman. Mr. Dent. Thank you. And at this time I would recognize Mr. Price for 2.5 minutes. Mr. Price. Thank you, Mr. Chairman. Sergeant Major, in using an illustration from the Army I am not just focusing on the Army nor am I asking you to comment on the specific case, but I think to ask this question quickly I can use an illustration from Fort Bragg. There have in recent years been very promising discussions about the way that the plans of the Army--the housing plans, the educational plans--might dovetail with some of the needs of the local community. There has, for example, been a focus on possible infill housing as opposed to just going farther and farther out into adjacent counties. That would obviously have a great impact on the city of Fayetteville, as well as meet the Army's needs. There has been a good bit of talk about the secondary education needs and the way that--those objectives might come together. I have to say that with the proposed drawdown and with the budget uncertainty, those discussions have also taken on an air of uncertainty and have been pushed into a more distant future. DRAWDOWN I raised that just to raise the broader question of that level of community cooperation and synergy with respect to military installations. I wonder if you have anything to report about, particularly creative examples of how this has worked. And I wonder here, too, about the consequences--perhaps unintended consequences--of the drawdown. Sergeant Major Dailey. Congressman Price, I think I can represent my fellow service members well, as we have taken a large chunk of the drawdown in our active force, which, as you know, major installations across our Army are not just installations; they are members of the community. And we like to think that way because my family was raised by them little hometown Americas outside those Army gates. We have many families that live and work out there. As you know, as we draw down the Army to historic lows, as I have mentioned before, this doesn't just affect our readiness; it affects the American people in many ways. And we always want to partner with our community because you want them to feel like that is their Army base. For security reasons we have had to close our gates and heighten security, and that is a necessity for the safety of our soldiers and our family members. But it is a toll. It is a toll we feel from our partners outside our gates. We hear it all the time. It is a huge concern, as you know, and it is something that I think we are going to have to continue to contend with in the future. Hopefully we won't have to make further cuts and further decisions. But I can tell you firsthand, to answer your question, we hear of great concern from our communities outside our gates. Mr. Price. I am not sure I am understanding your answer. I believe these security concerns, and--but I am asking about these joint planning and exercises with local communities, and in particular the kind of synergy we have begun to see with respect to housing and education decisions. Sergeant Major Dailey. Sir, I don't have the specifics on any joint ventures outside of our installations. Of course, I could take that for the record. [The information follows:] Service members, Family, and Soldiers for Life are integral members of their communities. Formalized in the Community Covenant, the initiative is a commitment designed to foster and sustain effective state and community partnerships with the Army to improve the quality of life for Soldiers and their Families. Mutual support helps to build Soldier and Family resilience, mutual understanding, and support. As a result, the Covenant improves military readiness and fosters a more pleasant environment. While the Community Covenant is an Army program, it extends to the other Military Services as well, recognizing that many community efforts support all Service Members and their Families regardless of their branch of service. Additionally, Army One Source employs a Community Support Coordinator, which provides local information, news, and links to resources that Soldiers and Families may require. For transitioning service members, the Soldier for Life program provides a formalized transition assistance program. The program not only provides necessary transition information, but also links those members with community organizations to ease the process. In this way, a transitioning Soldier can begin networking with employers and organizations in his/her civilian community which reduces the stress associated with separation. As a result, Soldiers for Life can immediately make a positive impact on local communities. Many states have partnered with the local communities to assist National Guard and Reserve Members, their Families, and Soldiers for Life. In this way, various community and benevolent organizations are brought together and offer a repository of information and points of contact that are easily accessible for those seeking assistance (schooling, mental health services, etc.). Many National Guard headquarters have also reached out to build partnerships with their local communities to ease transition and link members and Families with assistance. At the local installation level, Garrison Commanders and staffs partner with local communities to ensure mutual understanding and support. Through outreach events, town hall meetings, ``Adopt a Community'' initiatives, and meeting with local community leaders, the Army ensures that the concerns and needs of all stakeholders are taken into consideration. For instance, many installations have signed Memoranda of Agreement to assist with emergency services, emergency medical treatment, and schooling. Other initiatives have resulted in support and funding to feeder schools in the local community, infrastructure repair and improvements, etc. Chief Master Sergeant Cody. I could offer up a little bit. We are certainly doing it with some of the charter schools and are allowing those schools to be built on our installations. This is good for the members that live on the installations or in the immediate community, and it is also good for the community because children from those communities are able to attend those schools to fill them out. We are also doing some ventures where--I use Nellis, just as an example, in Las Vegas, where the community actually built our gym there because it was something we were not going to be able to get within the budget and be able to sustain. They built that gym for us that helped with, no kidding, not just the military men and women but the civilians that live in the communities that work on the installation. And they were able to do that and then turn that over to the Department of Defense. There are certainly some synergies taking place and doing just what you say: building housing communities close to the base at fixed cost, right? They are targeted at certain demographics of income, so they let that income of military members reside there as well as the local populous, so it is a dual kind of thing. So there is a lot of effort there. We call it a P4 initiative in the Air Force, or these private-private-private public type of things. So I think there is a lot of growth potential and help to support both the local communities as well as the military. Mr. Price. Thank you. Thank you, Mr. Chairman. Mr. Dent. Thank you. At this time I am going to recognize Mr. Joyce, for 2.5 minutes. QUALITY MEDICAL CARE Mr. Joyce. Thank you, Mr. Chairman. Recognizing that access to quality medical care is an important objective, we certainly hear a lot about it on the V.A. side, how accessible is quality medical care in the different services, and what are we doing to make sure that our service members are receiving the highest-quality care? One could answer for all or all could answer for one, however you want to address it, but it is sort of an open-ended question. Chief Master Sergeant Cody. I think we provide tremendously great health care to our military members. That doesn't mean it is not challenging to get the type of care they need, depending on where you are at. If we have military treatment facilities nearby with the right type of resources, that is obviously a better scenario for our military members and families, but it applies to retirees also; it goes to the extended footprint of TRICARE, and then the limitations that are placed on the various TRICARE programs on how they can access this care. I would arguably say we do really good, but I think the demand signal is actually on the increase when you consider all the costs of war and the men and women that have served over the last 25 years that are leaving, and now some of that care is coming home to roost. I think there is a desire by all of the Services--and we put this in in the budget that we want to draw more care back to the military treatment facilities and less out into the networks, only because we need that for the readiness of those no-kidding medical care providers. We need them to be trained and ready to go and keep their skills up. But it is also important that we have good access and good ability to use a network and have referral capabilities and not make it so painful. It can be very difficult for family members to get the care that they need if it is not available or there is not room at a military treatment facility. Master Chief Stevens. I was going to--Congressman Joyce and Congressman Valadao--both of you bring up good points when it comes to military medicine. I think it is important that as we, as Chief Cody just mentioned, as we look at ways to save monies and reduce costs of military medicine that we don't overreach and start counting too much on the civilian sector both inside the states and really outside the states is where it really can become concerning, because it can impact readiness without really knowing about it until it is too late. You know, something happens and you need that capability and that capability doesn't exist because you have been using capabilities out in the economy for so long, to reconstitute that could be very difficult. So there is a balance. And I know that our professional medical folks in DoD are taking a close look at that, but I think it is something we all need to pay attention to. Sergeant Major Dailey. I believe it is critical because there have been recommendations, we know, about our medical care. And it is critical to state that I agree, we do need to fix access to care. I hear that as a concern from our soldiers and family members in many places that I travel. But also, we have to maintain our medical treatment facilities. It is a readiness issue for us and for all the services because that is where our doctors receive the critical skills they need to be able to fight and win. I mean, we are going to need that medical care forward, and they have to be able to practice that medicine back here. And our families benefit from that expert care. Mr. Joyce. Also, I believe Sergeant Major Green brought up the nurses having a problem with credentialing. I am the co- chair of the Nursing Caucus and we are going to work on that for you, as well as other credentialing issues, going forward. Sergeant Major Green. All the credentialing, sir. Appreciate that, sir. Mr. Joyce. Thank you, Mr. Chairman. I am out of time. Mr. Farr. Can I comment on that, Mr. Chairman? Mr. Dent. Sure. Mr. Farr. What we are doing in our district right now--I hope the whole committee will come out and see--we are building the first joint clinic with DoD and V.A. And this committee ought to really pay attention to these because we are the only committee in Congress--the Senate doesn't have any--we are--we take care of soldiers from essentially cradle to the grave because we have all the veterans' authorities in this committee. And I think this jointness particularly between DoD and V.A. needs to be really pushed. But that clinic is the way we are going to get quality of care for everybody. Mr. Dent. Yes. It is a good point, Mr. Farr, that as we--I often talk about doing a better job integrating the veterans, and the veterans and the civilian health systems; we also have to talk about doing a better job integrating the veterans and the DoD health systems. Mr. Joyce. Mr. Chairman, I will second Mr. Farr's motion that we should do that as a group. Mr. Farr. That was such a motion. [Laughter.] Mr. Dent. Well, we are the Appropriations Committee. It is not always our role to set policy, although we would like to from time to time. At this time I would like to recognize Mr. Fortenberry, for 2.5 minutes, and sounds like we have a few-minute reprieve on the vote. Oh, there it goes. Go ahead. So go ahead. We are good. Mr. Fortenberry. I will hurry. Nobody told me it wasn't our job to set policy. Mr. Dent. Set policy from the authorizing committees; a little less from the Appropriations Committee. We all set policy. Mr. Fortenberry. So, gentlemen, I gave you a quick list of things. Perhaps you can look at the issue of the TRICARE question that I talked about, get back to us, just in a cursory manner, just as an initial blush. Two other things, though. The potential expansion of commissary benefits to benefits, maybe those who are disabled. I have proposed this. It gets hung up here and there. I want to put that back on the table. I also have another bill that I want you to consider and potentially help with. It is called the Veterans Transitional-- Entrepreneurial Transition Act, and what this does, it creates a pilot program whereby veterans who are prepared, because of their skill sets that they have obtained in the military, who are not in a position or do not need to use G.I. benefits for college--because the original intent of the G.I. Bill is transition, and that generally is interpreted as higher education. But there are a lot of--or potentially a lot of members of the military who have a sufficient set of skills that could move directly into small business on their own. This would provide a pilot project to see how the government could facilitate the upfront capital cost and, again, expand the number of veterans who are able to leverage their G.I. Bill benefits, and many do not. So I propose that to you. I have talked to numerous veterans' groups about this. We continue to sensitize everyone to the potential here, and we have gotten a lot of great feedback. One exception, but we are still working on that. I would like you to, again, in your analysis and thinking, see how this would integrate successfully starting with pilot programs where we would test it to make sure that this is functional. So that is what I had. And again, thank you for your service. Mr. Dent. Well, this concludes this morning's hearing. I would like to remind all members that our next hearing is going to be on March 2 at 9:30 a.m. in 2359 Rayburn with the secretary of veterans' affairs, Bob McDonald. So thank you all for your testimony. Appreciate it. And I think we want to do some pictures. So this meeting is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Thursday, March 3, 2016. INSTALLATIONS, ENVIRONMENT, ENERGY AND BRAC WITNESSES PETE POTOCHNEY, PERFORMING THE DUTIES OF ASSISTANT SECRETARY OF DEFENSE, ENERGY, INSTALLATIONS AND ENVIRONMENT KATHERINE G. HAMMACK ASSISTANT SERETARY OF THE ARMY INSTALLATIONS, ENERGY AND ENVIRONMENT DENNIS V. McGINN ASSISTANT SECRETARY OF THE NAVY ENERGY, INSTALLATIONS AND ENVIRONMENT MIRANDA A. A. BALLENTINE ASSISTANT SECRETARY OF THE AIR FORCE INSTALLATIONS, ENVIRONMENT AND ENERGY Chairman Opening Statement Mr. Dent [presiding]. Good morning. I would like to welcome everybody and bring this hearing of the House Appropriations Subcommittee on Military Construction and Veterans Affairs to order. And again, I welcome everyone to this morning's hearing on installations, environment, energy and BRAC fiscal year 2017. We have many questions to address concerning the 2017 budget request. It is notable that the military construction budget is down by more than 10 percent in fiscal year 2016 enacted levels. The budget request shows that combatant commanders' priorities and new mission sets were taken care of. But that seems to be at the expense of the services' basic needs. Projects planned in the future years' defense program for fiscal year 2017 dropped out. The impact of the Balanced Budget Act is still being felt as services attempt to include funding to restore projects that were cut to include quality of life projects. We want to discuss how force structure changes will affect the military construction budget in fiscal year 2017 and beyond. Another high-profile issue is the European Reassurance Initiative which our allies are very interested in. And the fiscal year 2017 budget request includes $113.6 million for seven countries. Some of us did visit Europe this past summer and talked quite a bit about the European Reassurance Initiative. Last, we all have a keen interest in managing our facilities better in terms of requirements versus capacity, both overseas and in the U.S. The panel before us today has a lot of answers to these questions I am sure. But before I introduce our witnesses, I would like to turn to the Ranking Member, Mr. Bishop, for any opening remarks he might like to offer at this time. Mr. Bishop. Ranking Member Opening Statement Mr. Bishop. Thank you very much, Mr. Chairman. And let me welcome all of our distinguished witnesses. I am glad that today we are going to be able to talk about the President's 2017 military construction budget request and we have the civilian leadership that can explain the priorities for military construction in each of the services. The folks before us have dealt with some big issues over the past few years. You have all dealt with sequestration and you all have dealt with the budget caps mandated by the Budget Control Act. And you are once again functioning under another budget compromise passed by this body last year, at least hopefully we will be functioning under that. I think each of you have done a great job in prioritizing the needs of your respective services and doing what is best for the warfighter. Each of your services has elected to invest in critical infrastructure and the needs of combatant commanders and the warfighter, as opposed to quality-of-life facilities. In fact, I am concerned that we are basically seeing quality-of-life projects disappear as you are forced to focus on other needs. Mr. Chairman, I remember saying 2 years ago that the Army's budget request was the lowest I had ever seen. Now fast- forwarding to the 2017 request, this budget is the lowest I have ever seen. Changing gears on another subject equally important is the DOD request to conduct another BRAC round in 2019. In 2005, Congress authorized a BRAC that ended up being far more expensive and expansive than we had been led to believe. And I understand in 2004 it was known that the department had 24 percent excess capacity. But in the 2005 BRAC, defense made reductions of only 3.4 percent. I understand that the 2005 BRAC was a reshaping BRAC, but a lot of money was spent to move things and, most importantly, move people. So I have concerns regarding another round of BRAC, but I also have concerns about maintaining infrastructure that we don't need, because those dollars could go to more pressing needs. So Mr. Chairman, I realize that these are very, very difficult issues for all of the members of Congress. And with that said, I am glad for today's hearing so we can discuss these issues openly. And I look forward to a very vigorous discussion. So thank you for the opportunity to share my concerns. And I yield back. Mr. Dent. Thank you, Mr. Bishop. Now I would like to introduce our witnesses. And before I do, I believe we are going to vote somewhere between 9:50 and 10:05, and so we will have to break briefly for that. I don't know how many votes we have. Just one vote? Well, then we can do it quickly and come back. So it shouldn't be a long delay. So our witnesses, the honorable Pete Potochney, acting assistant secretary of defense for energy, installations and environment; the honorable Katherine Hammack, assistant secretary of the Army for installations, energy and environment; the honorable Dennis McGinn, assistant secretary of the Navy for energy, installations and environment; and Ms. Miranda Ballentine, assistant secretary of the Air Force, installations, environment and energy. Thank you again for taking the time to be here and sharing your perspectives and expertise. Without objection, your written comments and statements will be entered in the official record. Due to the number of witnesses, I would ask that each of you summarize your statement in about 5 minutes so that that can maximize the amount of time for dialogue and questions between the panel and the subcommittee members. So with that, we welcome you. So I guess we will go from right to left, we will start with Mr. Potochney. Mr. Potochney Opening Statement Mr. Potochney. Chairman Dent, Ranking Member Bishop and distinguished members of the subcommittee, I appreciate the opportunity to be here and the honor to be here as well. By way of introduction, I am Pete Potochney, I am currently the deputy assistant secretary for basing and I am performing the duties of the assistant secretary for energy, installations and environment. I appreciate my statement being in the record, and I will summarize it very quickly. And my summary is essentially what you, Mr. Chairman, and Ranking Member Bishop just said. We are in a budget dilemma. We are making tough choices. We need BRAC in order to make those choices a little bit easier so that we are not spending money and resources better spent on our facilities that we do need and on readiness. And I don't know what much more I could say about that. I think you all recognize the situation we are in and we surely do. Regarding the next BRAC round, the last one was expensive. The transformation focus of it did require that we spend a lot more money than we would otherwise. There is benefit in that. BRAC is a recapitalization engine, to a certain extent; however, the focus of the next round will certainly be on reducing excess capacity and that is what we are after. And so if Congress does give us the authority for BRAC, we will be asking for a 2019 round. This is the fifth time we are asking, I think we can use it in a way that Congress would be satisfied. However, in recognition of the concerns that you all have, we do want to enter into a dialogue about that request. I think we all appreciate that the BRAC process works. It is effective, it is fair, it is transparent, so we don't want to do any harm to it. But if there are changes necessary, we would certainly like to talk to you about it. And having said all that, that concludes my remarks. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Hammack Opening Statement Ms. Hammack. Good morning, Chairman Dent and Ranking Member Bishop and other members of the subcommittee. Thank you for the opportunity to discuss the Army's fiscal year 2017 budget request. As you mentioned, our budget request is the lowest for the Army since 1993. The focus has been on combatant commanders' top priorities, as well as new directed missions, such as cyber or unmanned aerial vehicle support. Our MILCON budget does include a request for $233 million for the National Guard. And that supports recapitalization of readiness centers. And according to the Readiness Center Transformation Master Plan, which was requested by the Senate Armed Services Committee, the readiness centers are experiencing critical shortfalls. Our 17 request for the National Guard is a step toward addressing those shortfalls, but does not come close to meeting their entire request to recapitalize within the next 15 years. At the request of Congress, the National Commission on the Future of the Army also issued a report last year, and it includes recommendations on how the Army can free up funding for warfighting needs. The Commission specifically recommended, and I quote: ``the Congress and the administration should look for cost-savings opportunities in areas such as energy savings and a reduced inventory of military facilities.'' So with the planned reduction in Army active duty forces to 450,000 by fiscal year 2018, the Army will have an excess capacity averaging 21 percent. If budget caps remain in place, the Army will need to further reduce the number of Soldiers, and our excess capacity will only increase. The Army's budget request reflects our decision to continue to take risks in installation readiness to focus our financial needs on Soldier readiness. The risk we are taking in sustainment results in an accumulation of deferred maintenance. The Army needs authorization to optimize installation capacity and free up funds for critical military needs. Last week, the Acting Secretary and Chief of Staff of the Army testified before the Senate Appropriations Committee that the Army must have a round of Base Realignment and Closure authorized in fiscal year 2017. BRAC is a proven, cost- effective means to reduce excess infrastructure. Without a BRAC, the Army continues to spend scarce resources to maintain unneeded infrastructure, hurting our highest military-value installations. This is an unacceptable result for the Army and a disservice to American taxpayers. I look forward to working with you to shape the next round of BRAC. The Army's request supports efforts to implement energy cost savings and strengthen energy security on our installations. We are leading the federal government by implementing energy savings performance contracts. And since 2003, the Army has reduced our overall energy consumption by over 22 percent. Working with the private sector, we are increasing renewable energy projects, which we estimate will generate over $250 million in cost avoidance over the life of the projects. The Army manages 12 million acres of land on which more than 200 endangered species reside. There are many historic preservation requirements and land restoration needs. Our fiscal year 2017 environmental budget request of $1.05 billion enables the Army to manage these areas while meeting our cleanup requirements. This is critical to maintaining access to testing and training lands. The Army's top priority continues to be readiness. To meet our mission requirements, your Army requires ready and resilient installations to serve as platforms for readiness for our soldiers. I look forward to continuing to work with you to ensure they have the critical resources to defend the homeland. Thank you for the opportunity to appear before you today and for your continued support of Army soldiers, families and civilians. I look forward to the opportunity to answer your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. McGinn Opening Statement Mr. Dent. Thank you. Mr. McGinn. Mr. McGinn. Mr. Chairman, Ranking Member Bishop, members of the subcommittee, I am pleased to appear before you today to provide an overview of the Department of the Navy's investment in its infrastructure, energy and environmental programs. Navy and Marine Corps installations and facilities are the platform to train and prepare our marines and sailors to deploy ships, aircraft and operational forces and to support our military families. The infrastructure portfolio is vital to our operational forces and has a plant replacement value of nearly $230 billion. Of that, over $170 billion is for Navy and $56 billion is Marine Corps. I am confident that our very capable team works every day to efficiently manage this portfolio that enables that operational readiness. We thank Congress for passing the Bipartisan Budget Act of 2015, the National Defense Authorization Act for fiscal year 2016, and the Consolidated Appropriations Act of 2016. In fiscal year 2017, the President's budget is requesting $11.9 billion, a 10.4 decrease from amounts appropriated in this fiscal year, to operate, maintain and recapitalize our infrastructures for installation. The Department's MILCON program request will invest $1.13 billion worldwide to support warfighting and modernization of our utilities and critical infrastructure. We appreciate congressional support of two additional MILCON projects for our Marine Corps last year. We continue to rely on the private sector as the primary source of family housing for our sailors, marines and families. Over 62,000 Navy and Marine Corps family housing units have been privatized through the Military Housing Privatization Initiative, and we are pleased with the continued high levels of satisfaction that are reported. To maximize support for warfighting readiness and capabilities, the President's fiscal year 2017 budget request continues to carefully accept risk in facility sustainment, restoration and modernization. In the fiscal year 2017 budget, the request is $1.9 billion to sustain infrastructure, which is a 16 percent reduction from last year. Navy and the Marine Corps have resourced fiscal year 2017 facility sustainment at 70 percent and 74 percent, respectively, of the Department of Defense's facilities sustainment model. I will note, though, over time and if continued, this lack of sustainment will cause our facilities to deteriorate. The fiscal year 2017 base operations support request of $7.6 billion is comparable to fiscal year 2016. Due to overall budget constraints, base operations at Navy and Marine Corps installations are funded to the minimum acceptable standards necessary to continue mission-essential services. We accept low service levels for most installation functions in order to maintain our commitment to warfighting readiness and operations, security and family support programs and child development. The Department is committed to environmental compliance, stewardship and responsible fiscal management that support mission readiness and sustainability, investing over $1 billion to achieve our statutory and stewardship goals. The Navy energy program has two central goals: enhancing Navy and Marine Corps combat capabilities, and advancing energy security afloat and ashore. Partnering with other government agencies, academia and the private sector, we strive to meet these goals with the same spirit of innovation that has marked our history, new ideas delivering new capabilities in the face of new threats. Our Naval forces offer us the capability to provide power and presence, to deter potential conflicts, to keep conflicts from escalating when they do happen, and to take the fight to our adversaries when necessary. Presence means being in the right place, not just at the right time, but all the time. And energy is key to achieving that objective. Using energy more efficiently allows us to go where we are needed, when we are needed, stay there and deliver more firepower when needed. The Department of the Navy, in conclusion, continues to carefully and deliberately manage our portfolio to optimize mission readiness and to improve quality of life. The Department's fiscal year 2017 request makes needed investments in our infrastructure and people, preserves access to training ranges and promotes environmentally prudent and safe actions while ensuring energy resilience and security. Thank you, Mr. Chairman and Ranking Member Bishop, for the opportunity to testify before you today. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. McGinn. Ms. Ballentine. Ms. Ballentine Opening Statement Ms. Ballentine. Good morning. Chairman Dent, Ranking Member Bishop and esteemed members of the subcommittee, it is a true honor to be able to represent America's Airmen, before you today. You will have to excuse my voice. I have a little bit of a cold. The bottom line is that the Air Force's installations are too big, too old and too expensive to operate. Twenty-four years of continuous combat and a, constrained fiscal environment really have taken their toll. In order to afford other Air Force priorities, our total fiscal year 2017 PB facilities request this year at $8.3 billion is 4 percent lower than last year's request. That includes MILCON, Facility Sustainment, Restoration and Modernization, housing, BRAC and environmental programs. We have prioritized MILCON over FSRM in fiscal year 2017, requesting $1.8 billion in MILCON, that's actually a 14 percent increase over last year, and $2.9 billion in FSRM, that is down about 10 percent compared to last year. I expect our backlog of degraded facility requirements to grow. Our MILCON program is three-tiered, as you noted in your opening statements. First, we are ensuring that we are supporting all of the combatant commanders' military construction requests. That is about 16 percent of our budget. Second, about 34 percent of our budget ensures that we have the infrastructure for beddown of new weapons systems as they come online. Third, about 40 percent of our MILCON budget allows us to begin to chip away at the very significant backlog of existing mission infrastructure recapitalization needs. Of the more than 500 top-priority projects submitted by our major command commanders this year, we were only able to fund about 30. Finally, the Air Force needs another round of Base Realignment and Closure. We simply must align our infrastructure to our operational needs. The Air Force has about 30 percent excess infrastructure capacity. Since BRAC 2005, the Air Force has thousands fewer personnel and hundreds fewer aircraft, yet we have not closed a single installation in the United States. Since the Gulf War, we have reduced combat-coded fighter squadrons from 134 to 55. That is a nearly 60 percent reduction. Yet all BRACs in that time period have only reduced U.S. bases by about 15 percent. BRAC is not easy, and Congress has expressed three very specific concerns that really come down to community impact, cost and future mission needs. I would like to address each very briefly from the Air Force perspective. First, communities. Air Force communities are some of our greatest partners and supporters. These communities are full of our neighbors and our friends. The Association of Defense Communities recently asked community leaders what they thought about BRAC, and 92 percent of those community leaders said that the status quo of hollowed-out bases, reduced manning and minimal investment is worse for their communities than BRAC. Without BRAC, the Air Force will be forced to continue to spread out our Airmen and our aircraft. And many communities will continue to suffer from the economic detriment of hollowed-out bases without the economic support that only BRAC legislation allows. Second, cost. Congress rightly wants to ensure that the savings of BRAC justify the costs. And we agree. And simply put, the results of previous BRAC efforts for the Air Force are really staggering. Previous rounds of BRAC combined saved the Air Force $2.9 billion each and every year. In other words, the President's Budget request for this year would be almost $3 billion higher without the divestitures from prior BRAC rounds. And for the Air Force, they have had good returns on investment. Third, future mission needs. Some have questioned the wisdom of right-sizing infrastructure to our current force structure. And we have no intent to close infrastructure that may support future needs, and the analysis will be based on our military leaders' best judgment. Through five previous rounds of BRAC and numerous force structure changes, we have never dipped below 20 percent excess infrastructure capacity. We have always left and we always will leave room for future maneuvering. While only BRAC brings substantial savings, the Air Force also leverages innovation wherever possible. Our community partnership programs, which many of your communities participate in, build win-win partnerships. Enhanced-use leases and power purchase agreements save us money and give new life to underutilized real estate. We look holistically wherever we can. In closing, the Air Force had to make hard, strategic choices during the formulation of this budget request, attempting to strike a balance between the ready force for today, the modern force for tomorrow, recovering from sequestration and adjusting to budget restrictions. And we believe it is the right way ahead. Chairman Dent, Ranking Member Bishop and esteemed members of the committee, I ask for your full support of the Air Force's 2017 request. And I look forward to taking your questions. [The information follows:] Mr. Dent. Thank you. I guess we will start with Mr. Potochney. MILITARY CONSTRUCTION BUDGET The Department of Defense 2017 budget propose $7.4 billion for military construction and family housing. The request is $1.1 billion or 12 percent below the 2016 enacted level. The majority of the decrease is in military construction accounts, specifically $160 million decrease in Army construction, $642 million decrease in Navy and Marine Corps construction, $187 million decrease in Defense-Wide construction. Can you explain to the committee how the department determined what projects or accounts were to be reduced and at what risk to other mission-critical requirements? Mr. Potochney. When our budgets go down, we have to make the tough choices. This budget focused, as most of them do, as they all do frankly, on mission beddowns, operations, health and safety, quality of life. And then within that framework at the trade-offs that people at this table and our uniformed leaders have to make in balancing how to allocate resources within that kind of a framework. I don't know how else to do it and that is how we have been doing it. And I think the process we use, the best way to characterize it is, at least I would like to think of it this way, is it is informed decision-making. But it provides the services flexibility to deal with those individual dynamics. I don't know if that answers your question, but I have to answer it in a general way because they can tell you the specifics. FSRM FUNDING Mr. Dent. Yes. I guess anybody can chime in on this. But what areas do you--maybe any one of you can chime in--but what areas do you see the most risk with decreases in military construction budgets and the reductions to facilities, sustainment, restoration and modernization? Can anybody---- Ms. Hammack. I would say that the biggest risk that the Army is taking is in replacing our current infrastructure. We have over 52,000 buildings in poor or failing condition right now. The majority of our budget is focused on combatant commander requirements and new missions, which for us is cyber or unmanned aerial aircraft. What that does not get after is a significant number of existing buildings out there that are failing. That is the biggest challenge that we are facing in the Army. Mr. McGinn. I would concur with Secretary Hammack. Our program MILCON F-35, P-8, new-ship deployment and home porting, is in pretty decent shape. However, for other existing installation structures, that is where we are taking risks in MILCON. Ms. Ballentine. Likewise for the Air Force. We have prioritized MILCON in our budget this year, allowing us to get after some of those mission critical, worst-case, existing- mission infrastructure. But as I said, the backlog is very significant and we are only able to fund about 30 of the 500 top-priority projects that our MAJCOM commanders have submitted. We really are in a position of it is not a question of whether infrastructure is going to fail, it is what is going to fail and when. And we have a very robust, sophisticated process to try to optimize the mission-critical, worst-case first, but it is hard without a crystal ball to know exactly what is going to happen. Mr. Dent. Thank you. And is there an ability for the department to catch up or restore reductions in military construction due to sequestration or reduced budget levels in the out years? Anybody want to take a stab at that one? Ms. Hammack. Chairman Dent, I welcome that question because the ability to catch up is called BRAC. The ability to catch up is the ability for us to close those facilities that have least military value so that we can focus our funds, focus our military construction, focus our sustainment on our most critical facilities. Mr. Dent. Well, I got the message, it is all about BRAC. [Laughter.] On European Infrastructure Consolidation, in your statement, Mr. Potochney, I think you mention, after a one-time investment of approximately $800 million of military construction to implement two major base closures, eight minor site closures and 16 realignment actions, does the $800 million include the military construction projects requested for Germany in fiscal year 2017? Mr. Potochney. That is right. Mr. Dent. OK. And is there a corresponding operation and maintenance figure as well? Mr. Potochney. Yes. Well, the total investment is 1.4 billion and almost $800 million of that was MILCON. But that is over the whole implementation of EIC, European Infrastructure Consolidation. Mr. Dent. Thank you. And one other question, Mr. Potochney. In light of Russia's resurgent aggressiveness in Eastern Europe, there has been a growing concern amongst our allies about the risk of Russia utilizing its energy supplies as a strategic and political weapon. And we have all seen that with respect to the Baltics, especially in Poland. And I certainly share these concerns, as do a number of my colleagues. Is this risk being taken into consideration as DoD continues to develop and assess the energy plans for our U.S. installations and new military construction projects that are based within the European continent? EUROPEAN INFRASTRUCTURE CONSOLIDATION Mr. Potochney. I believe so. Relating to the question of what we have done to reduce our European infrastructure in general is, is we were really careful to make sure that our excess capacity is that capacity above what we need for current operations plus surge. And fuel considerations are included in that. We also looked pretty carefully at OPLAN requirements and that is part of our contingency requirements to make sure that something that maybe isn't being used now is considered within that surge category. And again, that includes fuel issues. ENERGY SECURITY OPTIONS Mr. Dent. And this is my final, quick comment, and then I am going to go to Mr. Bishop. And are more energy security options, including U.S. sources, being considered in any of this analysis that you have done? Mr. Potochney. Yes, I believe so. Yes. I can get you something more for the record if you would like. [The information follows:] Related to the threat of Russian manipulation of natural gas on our installations in Europe, my office has issued a policy to require installation energy plans (IEP) for every base. These plans provide a structured approach to selecting, prioritizing, sequencing and implementing energy projects and programs that ultimately results in improved long-term energy performance and energy resilience. Separate from energy used to heat and power installations, the Department is working to ensure the joint air and land forces have the appropriate petroleum and refined product infrastructure needed to meet NATO mission requirements in Eastern Europe. For instance, the Department is partnering with NATO to improve deployable bulk fuel storage and distribution, aerial refueling, and pipeline capabilities. Similarly, the Department is reviewing plans and concepts of operation for supporting operations in a rapidly evolving theater. Together, these initiatives will ensure that U.S. military forces have the fuel needed to meet ongoing and future requirements in support of our NATO allies. Mr. Dent. Thank you. At this time I would like to recognize the ranking member, Mr. Bishop. Mr. Bishop. Mr. Chairman, Mr. Farr is ranking on the subcommittee that will be meeting in just a few minutes. I would like to, with your permission, defer and allow him to pursue his questions first and then I will come back on the next round. Mr. Dent. Without objection, I recognize Mr. Farr. Mr. Farr. Thank you very much, Mr. Bishop, for doing that. I am sorry I am going to have to cut out. I am just going to give you my 2 cents' worth. And all I need as a response to all these questions is yes. [Laughter.] First is just a suggestion. I am probably more BRAC knowledgeable than almost any member of Congress because I have been so BRAC'd and the largest military base ever closed, threats of closing the Naval Post Grad School, Defense Language, BRAC'ing Fort Hunter Liggett. And I have been through that process. I have been 22 years in Congress and there isn't a day that goes by that I don't deal with BRAC issues. And I have converted myself from being totally against BRAC to, even though I have been, you know, the victim of BRAC, I think it is absolutely--I agree with you. But just a suggestion. Why don't you combine an ad hoc committee of staff members and your folks to look at the language in which you bring it up? You always give the same language in your request for BRAC. And you know, Congress just rejects it. And I think if you presented it in a different way, in a very smarter ask, you might have a different reaction. And I just suggest you use your--we have got a lot of technical people here that could help you with that. That might take some of the politics out of it. Ms. Hammack. You are going to get a yes to that one, sir. [Laughter.] MONTEREY MODEL AND AGREEMENT Mr. Farr. OK. And I want to ask you, Ms. Hammack, about this Monterey model. I think a lot of things, you know, you can really take what has happened here in Congress, we have created a Defense Community Caucus, we have got defense communities aware of what military bases are about and what they can do with the municipal agreement models. And we are created an Unexploded Ordnance Caucus. I am co-chair of both of those. And I think we--now we have got to go vote. We have got to do everything at once around here. With the Monterey model, could you commit to the new extension of the Army agreement with Monterey so that we can get that done and then get the year after that? It is just lingering and I would like you to do that as fast as possible. Ms. Hammack. To that you get another yes. Mr. Farr. Pardon me? Ms. Hammack. Yes, we will. Mr. Farr. Yes. Well, and also I just ask that you send Mark--your lawyer and Army Budget Director Paul Cramer out to Monterey to meet with Colonel Fellinger. I mean, he is facing a lot of these things and I just don't think, from watching the perspective, you see all the nuances of it. And I think you would write a much better contract if they were on the ground and could see that. The other is we have a provision in the law, I guess, that doesn't allow housing to be built on National Guard bases. We have created in Camp Roberts, which is right next to Fort Hunter Liggett, a SATCOM operation there. And the commander of SATCOM says, of the 14 installations around the world, this is the most vital one, geophysical one. It is a long way from any community around. It is in the boonies. And what we thought is that perhaps you could possibly be looking into the possibility of the geo-bachelor quarters that could be built there. And I just wondered if you could investigate that and let me know what the options might be available to provide some housing for that operational facility there so that they don't have to commute so far. And I know there are families and all those issues. But are there other options? And lastly before I go, because you have invested the money to create the state-of-the-art, probably the best in the United States, the shoot house, a whole village of where you can go in and practice attacks. It has got churches and it has got everything, you can turn that village into any kind of scene you want. All electronically wired and everything so you just put in the kind of background noises and languages that you want. FUTURE YEAR PROJECTS PRIORITIES And now in the FYDP, to add near there, is a new automated, multipurpose machine gun range. And it is in the FYDP. And if I ask in a letter, I am violating the earmark thing. But if you ask when there is money left over at the end of the year that you would like that money to be spent on that range and move it up on the FYDP from 2020, it might be very cost-effective. Ms. Hammack. Sir, when we look at Army priorities, we address the failing first, we address COCOM Commanders' requirements, and we address new missions. We do our best to prioritize according to that model. So unfortunately, we quite often do not have funding to do more advanced---- Mr. Farr. No, I am only suggesting at the end of the year there may be some leftover funds because contracts didn't get obligated and that ends up being a surplus. And they usually come to the committee and ask us what our priorities are. We now turn it back to you. And I am just suggesting, if there is an opportunity take a look at it. All right, my time is up. And I am 13 seconds over. Mr. Dent. That is pretty good for you, Mr. Farr. [Laughter.] That is pretty good. We have how much time on the clock? About 11 minutes. I think what we will do is we will recognize Mr. Jolly and then we will come back to the ranking member. We have three votes. It is not one vote. So Mr. Jolly, you are recognized for 5 minutes. Mr. Jolly. Thank you, Mr. Chairman. And I will try to keep it brief. UNAFFORDABLE TO MAINTAIN CURRENT INFRASTRUCTURE I have had the opportunity to talk with many of you. And I share your concerns. I don't understand why we are paying for cement we don't need when we have got warfighters who need to be better equipped. That is the bottom line. So I hope we can find a constructive way forward. Clearly, everybody is on the same page. But to the panel, I would say, though, Secretary Ballentine, you said something probably more blunt than anybody else in your written testimony. The Air Force simply cannot afford to maintain our current infrastructure footprint. Simply cannot afford it. Ms. Ballentine. Yes, sir. Mr. Jolly. What is the reality of that? What does that mean? Ms. Ballentine. Well, what it means is exactly what it says. Mr. Jolly. So what is the result of that, I suppose? Ms. Ballentine. We are doing our best to prioritize the mission-critical, worst-first, as Ms. Hammack said, so we are really going through each and every one of the projects that we know needs to happen, and there are thousands of them, 500 top priorities in this year alone, and really trying to prioritize which facilities are in the worst condition that really have to be recapitalized and are mission critical. And we try to prioritize those projects. We also try to prioritize the sustainment fund. That is kind of like changing the oil on your car. Mr. Jolly. Sure. Ms. Ballentine. If you don't prioritize the sustainment, you are going to create problems down the road. So we try to keep that as full as possible. Even this year, we are funding that only to 77 percent, which is lower than we have been. Mr. Jolly. And your written testimony states that Air Force excess capacity is 30 percent or will be 30 percent by fiscal year 2019. Is that right? Ms. Ballentine. It is about 30 percent excess infrastructure capacity. We have run the numbers a number of different ways, looking at various force structures. And it ranges anywhere from 28 to 32 depending on which force structure you use. Mr. Jolly. All right. Ms. Ballentine. So we round it out to about 30 percent. Mr. Jolly. Thank you. And Ms. Hammack, you used the term ``installation readiness.'' Is that referring to--what is the lay interpretation of installation readiness? INSTALLATION READINESS Ms. Hammack. Installation readiness means that we support Soldiers so that they are ready to deploy. Installation readiness affects training land. Installation readiness affects the buildings that we use to do pre-deployment training. Installation readiness affects the energy that is available to ensure that we can deploy under a wide range of circumstances. Mr. Jolly. And that is where you have insufficient resources to address installation readiness needs? Ms. Hammack. We say there is a risk. As Secretary Ballentine said, we do our best to maintain those critical infrastructure first, but there is simply not enough money across the budget to maintain all the facilities that we have. Mr. Jolly. OK. And you and I had the opportunity to talk about some of the results of the European infrastructure consolidation. I know that was mentioned earlier. You have a little more flexibility in addressing overseas installations. Can you share some real-life examples of the success of that and why that might provide some encouragement for CONUS BRAC, if you will? Ms. Hammack. Yes, sir, and thank you for that question, Representative Jolly. You know, when we look at the European Infrastructure Consolidation for the Army, between our restoration and modernization funding and our MILCON funding through 2022, we are going to spend about $300 million. What we are going to return is $170 million in annual reoccurring savings, and that is less than a two-year return on investment. That means that we are returning to Germany those facilities that we no longer have a mission need for. What we are going to end up with is not zero excess infrastructure, but around 7 percent. Around 7 percent is where we think we can balance surge requirements, we can balance modification to mission requirements. That is what we would like to do in the United States. The Army right now is anywhere between 18 and 21 percent excess capacity. We will never get to zero, but there is plenty of room for us to reduce excess infrastructure, reduce those costs so that we can focus on more fighter requirements. EUROPEAN INFRASTRUCTURE CONSOLIDATION Mr. Jolly. And the European infrastructure consolidation you would consider a successful construct, if you will? Ms. Hammack. Absolutely. Mr. Jolly. Do you have a comment as well, sir? Ms. Ballentine. Yes, I will chime in from the Air Force perspective where actually the bulk of the actions are. We have nine actions. It is going to cost us about $1.1 billion and we will save probably close to $300 million each and every year. But what is really key is the process worked. It worked very effectively. And we are not reducing our warfighting capabilities at all. We are just viewing it more effectively. Mr. Jolly. It is a good model. Ms. Ballentine. It is a good model. Mr. Jolly. All right, thank you. Mr. Potochney. I wonder if I could add to that, though. We are closing Mildenhall, that is huge in Europe. We would not be able to close a base here because we lack the authority to close bases. Mr. Jolly. Sure. We have about--how much time left? Thank you, Mr. Chairman. Thank you. Mr. Dent. Thank you, Mr. Jolly. We have 6\1/2\ minutes left in the vote. I am going to recognize Mr. Sanford. I recommend that all you go up to vote. I will stay as long as we can. So I would recognize Mr. Bishop for as long as he wants to speak. Thank you. Mr. Bishop. Thank you very much. EXCESS CAPACITY Secretary Hammack, the Army's estimate of excess capacity across the enterprise is 160 million square feet, at the incidence of 490,000 active component and 170 million square feet at an [incidence] of 450,000. To deal with this problem, the Army Management Action Group approved a strategy of right-sizing within installations to reduce costs. First, can you tell me how much it costs to maintain this infrastructure? And next, can you explain what the Army Management Action Group has done to control costs? How bad would your capacity problem get if the Army is forced to go below 450,000? And for Secretary Ballentine, the Air Force's estimate of excess capacity is roughly 30 percent while [inaudible] manpower has steadily decreased. So the Air Force has drawn down aircraft and personnel without reducing infrastructure. How much does it cost the Air Force to maintain excess capacity? Has the Air Force taken steps, like the Army, to address it? Ms. Hammack. Thank you, Representative Bishop. Mr. Bishop. And if you would abbreviate your answers. I know we would like to make the vote. Ms. Hammack. OK. Well, the strategy for right-sizing within the installation means that we consolidate personnel into the best-quality buildings and we are able to shut down those buildings, which means you modify the temperature controls, you don't have lights that you have to manage, and you put them pretty much in cold storage. We have identified that there is approximately 40 million square feet that we could put into cold storage through those efforts. Since it costs us about $3 a square foot to maintain buildings that are underutilized, we think that 40 million square feet could be about $140 million annual savings. Now, it is going to take us a while to consolidate into the best buildings. We have issued an executive order for every garrison commander and senior mission commander to develop an installation reduction plan addressing excess within their installations. Mr. Bishop. Thank you. Ms. Ballentine. Ms. Ballentine. Thank you. So it is slightly different for the Air Force. Since the early 1990s at the beginning of the Gulf War, we have reduced our aircraft force structure by about 60 percent in terms of combat-coded fighter squadrons and our personnel by about 30 percent. Our infrastructure base closures have only been about 15 percent. So when we look at consolidating, it is not just a matter of consolidating people into buildings, a lot of our excess infrastructure has to do with iron, with actual aircraft, so we have extra parking spaces, excess hangar space, excess maintenance space. And really, the only way that we can get at that excess is to consolidate by closing bases entirely. And that is really where the big dollar savings comes. Now, that said, we have very robust programs in energy savings, in enhanced-use leases to get after some of the underutilized real estate on our bases, through our community partnerships programs, and those programs are paying very good dividends for us, but just nowhere to the tune of what we can do if we can actually close the base. Mr. Bishop. Thank you very much. Mr. Chairman, thank you. Mr. Dent. What we will do is this subcommittee meeting with be in recess to the call of the Chair, which should probably be about half-an-hour. We are in recess. We have got 2:40 to go. [Recess.] Mr. Dent. Thank you all for returning. I would like to bring to order this meeting on the Subcommittee on Military Construction and Veterans Affairs. For a variety of reasons, this is a crazy morning, Mr. Bishop will not be able to return, Ms. Lee will be here until five of and then that is when the hearing will have to end. So with that, I would like to recognize the gentlelady from California, Ms. Lee, for 5 minutes. Ms. Lee. Thank you very much. Thank you all again for being here and for your service. Wanted to mention a couple of things. First of all, I would just like to note that during my tenure with my former boss, former chair of the Armed Services Committee, Ron Dellums, we went through a BRAC process. Then I actually went to the legislature and I, along with Congressman Farr, we were the point people on BRAC from the state of California. And we went through in my district, I think it was five bases that were closed. And so as part of the transition process, we worked to ensure that the local community affected by BRAC had the support that it needed to adjust to the closing of the bases. But we still have a lot of work to do. And this goes back years. So let me just ask you a couple of questions. First of all, where Alameda Point is, the Naval Air Station, we took title to about 1,400 acres of land and water from the Navy. This was in June of 2013, even though the base was closed 10 to 15 years before. The V.A. took about 624 acres of land from the Navy in November 2014 for the construction of the new V.A. outpatient clinic and cemetery. A good example of how properly re-purposed, former military installations can really set a standard for the rest of the country. ENVIRONMENTAL REMEDIATION I know the Navy has been conducting environmental remediation efforts in Alameda at Alameda Point, including the removal of toxic substances from below the ground and creating grassland and wetlands. So while the department is investing more than $1 billion, I guess it is in, well, in fiscal 2017 across the agencies with regard to environmental compliance, this number represents a 2.3 percent decrease in funding from 2016 levels. So I wanted to hear about the Navy's next steps as it relates to environmental remediation throughout the country and specifically at Alameda Point, and your long-term environmental sustainability and stewardship efforts. Because with this kind of a decrease, of course, I know all of us are a bit concerned about more delays. Mr. McGinn. Thank you, Representative Lee. We are taking great steps, continuing to take great steps. You mentioned the closure of those five major bases in the Bay Area. Since 1991, we have had five major BRAC actions that the Navy has participated in. Ninety-four percent of the total acreage has been returned or turned over for economic development activities, including those that you mentioned at Alameda. We anticipate that in another six years, the remaining 11,600 acres will be turned over across the country. Specifically for our environmental remediation program, we have a prioritization matrix that decides where the greatest issues are and where can we put the money for remediation that will accelerate, to the maximum extent possible, the turnover of that land to economic development activities. So I can provide you more of a detailed response specifically on Alameda or across our whole environmental remediation related to the BRAC program. [The information follows:] The Navy continues to make great strides in its environmental remediation efforts at Alameda Point. Our next step in this process will be the Phase II transfer under the Economic Development Conveyance of approximately 183 acres to the City of Alameda targeted to occur this year, which will put the former base at 89% transferred. The remaining 11% (304 acres) requires additional remediation and will be transferred over the next 3 years. We have kept the pace of our environmental remediation at Alameda Point throughout austere budget years. For NAS Alameda, the FY16 budget is $15.1M, the FYI 7 budget request is for $15.3M. The estimated environmental cost to complete for FY18 and beyond is $28.7M, which includes long term operations and monitoring of remedies in place. It is currently anticipated that this funding profile will allow us to transfer 100% of the former base by 2020. The total BRAC Program environmental cost to complete is approx. $1.1 billion for FY 17 and beyond. Ms. Lee. OK, thank you. I would like to get both because naturally with a 2.3 percent decrease all of us are quite concerned. Mr. McGinn. Right. Ms. Lee. Could I ask one more question for our ranking member? Let me ask with regard to the budget driving the request for a new round of BRAC. Is this the drawdown of forces? Is that the reason for that? And how complicated is this new BRAC process going to be? This budget calls for an entire new round. So what is really driving that? REQUIREMENT FOR BRAC ROUND Mr. Potochney. OK. So the drawdown in forces makes the requirement for BRAC even more important. Less forces means less bases are required to house them and for them to operate from. But the requirement for us, and I call it a requirement for us to devote the maximum resources to readiness and sustainability, and that includes our built infrastructure, is critical. And so to spend money on facilities that we don't need really doesn't make any sense to any of us, and I believe to Congress as well. The BRAC process is the only way to get at it in a holistic, fair, transparent way. Ms. Lee. And so how about the European infrastructure consolidation? Did that function as the training effort BRAC and the U.S. service standard? Mr. Potochney. Yes, ma'am, that is a good way to put it. We did model it after the BRAC process. You know, the BRAC process, we have a statute, but we used criteria and used basically the same kind of analysis, the same kind of decision process, and we did that on purpose, both as BRAC practices, as you mentioned, training, but also because it is a good way to look at your infrastructure. Ms. Lee. OK, thank you very much. Thank you, Mr. Chairman. Mr. Dent. Thank you. I would like to at this time recognize the gentleman from Ohio, Mr. Joyce, for 5 minutes. BRAC PROCESS--GUARD AND RESERVE Mr. Joyce. Thank you very much, Mr. Chairman. And I would like to start off with Ms. Hammack. There has been a lot of discussion about the BRAC process. There are many of us who don't have active bases or facilities in our district, but we do have National Guard and Reserve facilities. How would they be impacted by BRAC? Ms. Hammack. Thank you for the question, Representative Joyce. Mr. Joyce. And I am sorry if somebody asked that before. Ms. Hammack. No, that question has not been asked. In BRAC 2005, the Reserve component, both Guard and Army Reserve, participated in BRAC for consolidation benefits. In some of our best ones, you might have two Guard units, one Reserve unit, and perhaps Fish and Wildlife Service that merged together into one federal facility with Guard and Reserve units utilizing the facility on weekends, and Fish and Wildlife using it on weekdays. What it meant is the total federal cost of operations went down. It also meant that each of the divisions had more capabilities, they had better training, classrooms, they had better break rooms, they had better meeting rooms and gathering rooms, they had better parking facilities. So it was a net benefit to all. Based upon the experience in BRAC 2005, the Guard and Reserve are very eager for the next round of BRAC to help them benefit by adjusting to today's demographics from the demographics of the 1940s and 1950s where many of them were stood up and their facilities were built. The Guard and Reserve would benefit from consolidation. The Guard and Reserve would benefit from facilities built to today's standards, to today's mission requirements, to accommodate the current missions that they have, which are very different from some of the past. Mr. Joyce. Thank you. Ms. Hammack, in your written testimony, you state that in response to risks posed to our Nation's vulnerable energy grid, the Army is improving the resiliency of installations through the use of on-base renewable sources of energy. You indicate that resilient Army installations are those that can withstand security threats, such as power interruptions, cyberattacks, or natural disasters. The style of warfare obviously is changing. On top of needing to maintain a strong physical military presence, there are new challenges brought on by this threat of cyber or energy attacks. Can you tell us more about how these on-base renewable energy sources will enhance the resiliency of Army installations? RENEWABLE ENERGY SYSTEMS Ms. Hammack. Absolutely. We are partnering with the private sector and leveraging private sector capital to install renewable energy systems on Army bases so that should there be a disruption with the national grid the base is still able to operate. In the last calendar year, we demonstrated that at Fort Drum in upstate New York. Fort Drum was a base that was impacted by ice storms and weather events that took down the national grid. The base was out of power for over a week. During that time, they tried to run on backup generators, but then fuel was running low. The private sector came in and built a biomass facility that is utilizing clippings from the timber industry and from forest thinning to power the facility. They have 3 months' worth of fuel on or very close to the base. This winter, we demonstrated that they are able to disconnect from the grid and still power all services on base. That is a resilient base that is there to meet mission and deployment requirements of the active duty. It is there also to serve the community that is looking for a light in the darkness when the grid might go down. So that is what we mean by resilient bases with renewable energy. Mr. Joyce. That sounds like a great thing. How about the cyberthreat problems, what have you done to address those? Ms. Hammack. We are working hard to address the cyberthreat. Certainly, when you are able to disconnect and isolate, that makes your grid less vulnerable. Certainly, the cyberthreat is constantly changing. That is something that we are working on very closely with the cyber community to try and enhance our resiliency by hardening our systems. Mr. Joyce. Great, thank you. I have no further questions at this time, Mr. Chairman. Mr. Dent. Thank you, Mr. Joyce. At this time I would like recognize the gentlelady from Alabama, Mrs. Roby, for 5 minutes. BLACK MOLD AT AL UDEID AIR BASE Mrs. Roby. Thank you, Chairman. And thank you all for being here today. I have just a few issues that I want to address. Secretary Ballentine, I want to talk about mold for a minute. I have seen multiple reports recently regarding the presence of the black mold at Al Udeid. Recently I received a text message from a friend of mine who is actually there right now. He said these reports--they are not made up--they are real and it is really bad. And it is not just in the bathroom facilities. There is mold in the curtains. It is really just gross. And I know that our National Guard members have been exposed to this unhealthy environment. I have read the internal document that talks about the stages of how this is going to be addressed. But clearly, it is not being addressed quickly enough. So I wanted to hear from you directly about your thoughts on this. And what can I tell my friend who is there? He is only there for a short time. As he stated in his text message, he is more concerned about those that are there for the duration. And so it is very concerning. Ms. Ballentine. Thank you, I appreciate it. I just came back actually from the AOR myself this fall and we did talk some about the mold issue as well as a range of challenges that we face with expeditionary facilities that really have outlived their life. Our Chief of Staff and Secretary have asked United States Air Force Central Command (AFCENT) to continue and step up the pace of the program to maintain. We have changed the custodial contract there and that has already started to show some benefits, increased government oversight of the contract, so to maintain is step one. Then replace, repair and actually start to move people into more permanent facilities. So this summer, 20 permanent facilities will be completed which will be able to house 2,500 people. Making that transition is a very important piece because these expeditionary style of latrines and lodging in this type of environment with the heat and the humidity, you don't tend to think of Al Udeid as a humid type of place. But being so close to the water, it tends to be very humid. Heat, humidity and expeditionary facilities tends to make mold a pernicious problem. AIR TRAFFIC CONTROL TOWER AT MAXWELL AFB Mrs. Roby. Sure. Well, I wanted to bring attention to it today, and I thought it was appropriate. And my hope is that you will continue to provide us any updates as it relates to those efforts. And I would appreciate that. I want to move real quickly to the air tower at Maxwell Gunter Air Force Base. It is the home of Air University and other very important missions. And we not only have the 908th there, but also a lot of VIPs fly into Maxwell on a routine basis. Now, I have had the opportunity twice to climb up in this tower. And since we are offering invitations, I am sure that the leadership there would love to have you come climb up in the tower. It is a frightening experience, to say the least. And when you get up there, you can't even see one of the runways. It is obstructed by a building. What is also fascinating about this tower is the escape mechanism in case of a fire. It is a cable that runs to the roof of a nearby building and basically a tarp of sorts that you would put your body in and glide to the roof of the adjacent building. So obviously the tower is very antiquated, and these are serious problems with not being able to see the runway. So we had language in the last MILCON VA appropriations bill that addresses this specifically and encourages the Air Force. These towers are very important national security assets and the Air Force should maintain them in a manner that will ensure their role of protecting the U.S. national security interests. So I would love to hear an update about where we are with this tower and others that need to be replaced. Ms. Ballentine. Yes, ma'am. And I think you just gave a perfect example as an answer to Representative Jolly's question earlier about can we describe some of the risk that comes with these reduced budgets, and that is a perfect example. The good news on that particular tower is it is in the Future Years Defense Program (FYDP) right now, it is in the fiscal year 2019 program. And we do have a range of existing air traffic control towers in our list of projects that really need to happen. Mrs. Roby. OK. Well, please, again, keep me posted about where we stand on this tower. And if you are ever down our way, let me know and I will make sure you get to climb up the tower. [Laughter.] Ms. Hammack. Thank you, I will. Mrs. Roby. OK. Thank you, Chairman. I yield back. Mr. Dent. Thank you, Mrs. Roby. I would like to recognize Ms. Lee. She has a few questions. Ms. Lee. Thank you, Mr. Chairman. Let me ask you, Ms. Hammack, with regard to the Oakland Army Base Remediation Project. Our office has been receiving periodic updates. The remediation contract, it was awarded to Engineering Remediation Resources Group. And the tasks related to the cleanup, I want to know if they are ahead of schedule, on schedule, any updates on this project because again, it has taken a long time. And just, what efforts are you taking with regard to ensuring environmental sustainability at the Oakland Army Base. MINORITY AND WOMEN-OWNED BUSINESSES And then for all of our witnesses here, and you don't have to respond today, but if we can get the information with regard to the participation of minority and women-owned contractors, how many of these businesses do your branches work with? [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] And I would like to see if we can get that information disaggregated for this committee, because you have pretty significant budgets with contracting opportunities, and I want to make sure that those opportunities are going to small businesses, minority and women-owned businesses as required. Thank you. OAKLAND ARMY BASE BRAC CLEANUP Ms. Hammack. Thank you, Representative Lee. Certainly, the Oakland Army Base, the work there is progressing. We anticipate that the majority of the cleanup will be done in June of this year. After that, the transfer really depends upon the state of California and their review of the work that was done and their processing. The work is on target, it is on schedule. We hope that it will be able to be transferred within the calendar year; if not, early next. Ms. Lee. OK, thank you very much. Thank you, Mr. Chairman. And again, these bases closed, gosh, way early 1990s, early to mid 1990s, and we still are on the process of remediation, cleanup. And to this point, we still haven't been able to move forward to fully recover and redevelop the bases. Ms. Hammack. If I could comment on that. In the prior BRAC rounds, there had not been an effort by the services to clean up bases while those bases were operational, very little effort. What is very reassuring is that the bases closed in BRAC 2005 had very little environmental cleanup because we started getting after it while the base was operational. So really, it is some of the older BRAC rounds that have the biggest challenges for cleanup. Ms. Lee. Thank you. Lessons learned. Thank you, Mr. Chairman. Thank you, ranking member. Mr. Dent. Thank you, Ms. Lee. At this time I would like to recognize the gentleman from Nebraska, Mr. Fortenberry, the vice chair of the subcommittee, for 5 minutes. BASE REALIGNMENT AND CLOSURE Mr. Fortenberry. Thank you, Mr. Chairman. Good morning, everyone. Pleasure to see you all. You may remember last year when you were here I held up a little sign. And Secretary Ballentine, I was reading a little bit of your bio here. You have a degree in psychology. So what would you rather hear, base realignment and closure or military installation savings commission? What is more inviting, what is more attractive? I am trying to get everyone to shift the rhetorical construct of this whole endeavor, which most of us anyway agree with. When you testify that we have got 30 percent excess inventory in the Air Force, we are asking you to do more with less, and yet carry forward older, antiquated things that are no longer viable, that is not fair to you. It is not fair to the taxpayer either. However, because communities have so integrated and also been so supportive of the various military installations around the country, we look for off ramps when it is necessary because of our national defense needs, but also to assist the community in that transition. Starting with language that is less ominous and is more partnering and inviting would be just a suggestion. I plead with you to do this, because this is, I think, a better way to endure the psychological trauma. Now, I am not a trained psychologist. Mr. Dent. Call Frank Luntz. [Laughter.] Mr. Fortenberry. That is true. In that regard, it is a serious comment in the sense that I want us to try to continue to partner constructively in this regard so that we are assisting you with this process, that it is, yes, at certain times a painful and difficult process, but nonetheless can be creatively achieved through community input as our good friend Congressman Farr has spearheaded and continues to talk about the Monterrey model whereby certain communities who are situated can take on certain services that are not integral to your mission, expanding on that. And then when there is simply excess inventory, carving it off or out when possible, versus you get to close and you get to stay open, again, is a better framework, I think, in pursuing this and it would maybe get us there faster. RUNWAY REPAIR AT OFFUTT AFB One quick question for you, Madam Secretary, is the issue of the Offutt Air Force runway. So we have a critical piece of national security infrastructure with Strategic Command and Offutt located in a symbiotic relationship. We have a runway that air crews have to literally walk down to make sure there is no loose piece of concrete that could damage one of your planes. DoD is committed to doing this project. It is not a matter of if, it is a matter of when. At the same time, I and others have the obligation to continue to have reasoned oversight of this and, again, to partner with you. So in that regard, we have put together a working task force of our delegation. We meet regularly with the governor as well to look at the issues of seamless transition for you. For instance, the Guard base in Lincoln, 50 miles down the road, has enough capacity to support housing of your operations in the meanwhile. There is some consideration that the Omaha airport, it is called Eppley, which is in very close proximity, could be some kind of staging in case of an emergency. All of this is to say that the broader project of a full replacement would be the ideal, but I recognize there are a lot of variables that go into that consideration. It is not just money, but also the downtime. So can you comment on both of these dynamics, of changing the way in which we are rhetorically constructing this need to reduce your excess inventory, assisting communities in the transition and the specifics of Offutt? Ms. Ballentine. Sure. And I think you said it all very well. So let us take the first one first. From my perspective, absolutely, we ought to be talking about partnering with communities, we ought to be looking at opportunities for community benefit. Our community partnership program has been very successful, our enhanced-use lease program has been very successful in looking for ways to leverage underutilized real estate. Now, that said, we still absolutely are going to need some closures. It has really got to be both/and, from my perspective, not either/or. So there is a lot we can do to partner with communities, leverage the Monterrey model, leverage what we have learned through our community partnerships programs, leverage enhanced-use leases. And at the end of the day, we simply are going to have to close some bases to really get those dollar savings. So it is a both/and, from my perspective, speaking of language, not an either/or. On the runway, you are absolutely right, and you said it exactly right, that it is not if, it is a matter of when. We are looking at options now and really balancing cost with downtime, how long can the mission withstand the runway being closed. But I really appreciate your offer of partnership and the pulling together of your commission to help us work through those issues. So I will ensure that our folks are well- connected with that. Mr. Fortenberry. Thank you very much. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mr. Fortenberry. I guess we will move into the second round of questioning. And I will yield to Mr. Bishop and then I will come back to myself, because I know he had an abbreviated first round. MARINE CORPS RELOCATION TO GUAM So, Mr. Bishop, you are recognized. Mr. Bishop. Thank you very much, Mr. Chairman. I would like to touch on the Asia Pacific strategy and the Guam realignment of the marines, Mr. McGinn. Secretary, can you give me an update on the Department's efforts to pivot to the Asia Pacific region in terms of facilities, specifically in Guam and Japan? I know there have been numerous issues with the local politicians and the general public in that area. In fact, they have brought that conversation to Washington to my office several times. I would like to know, as we are seeing some concrete movement on the project, what have been some of the issues that have surfaced, and have they been adequately dealt with? Mr. McGinn. Thank you, Mr. Bishop. Two parts, basically the relocation of marines from Okinawa to Guam is proceeding as planned. We have started construction activities and these are going well. As you may know, the initial operational capability for those marines relocated to Guam from Okinawa is 2022. And they are going to be finished and achieve final operational capability in 2026. Separate from that, but related, is the replacement of Futenma Marine Corps Air Station on Okinawa. And the plan that has been strongly supported by the government of Japan has been to relocate that function, that operation up to Camp Schwab at the northern part of Okinawa. There has been a lot of concern expressed by the governor of Okinawa and some of the citizens. However, the project being managed by the government of Japan is continuing. I would describe it as being in phase one, mostly planning and measurement and some early construction in the area where the intent is to have that smaller runway located. But it is an issue that we are keenly aware of. We are working very closely with folks in Japan. Our III MEF commander and his staff are engaged. We are trying to transfer property from control by the Marine Corps on our bases that are located throughout Okinawa to the government of Okinawa as quickly as we can, consistent with the mission in that very active area. Mr. Bishop. Thank you. Another thing I am concerned about is the lack of quality-of-life projects that we are seeing under the constrained budgets. What efforts are you taking to ensure that when the marines move from Japan to Guam that these types of facilities will be in place as they move to the island? Mr. McGinn. There is a lot of close coordination by Fleet Marine Forces Pacific, General Toolan and his staff, as well as with the Pacific commander and his staff, Admiral Harris, to make sure that those projects are in fact lined up and ready to support the full Marine training mission when they do get to Guam. This involves everything from construction of a cantonment area, adding housing to Andersen Air Force Base where those marine families will be housed, the provision for firing ranges in the northern part of Guam, and a continuing effort to make sure that the construction timelines match the plan to actually move those marine units. SHORE HOUSING FOR SAILORS Mr. Bishop. Changing gears a bit, Master Chief Stevens told us last week that he was extremely concerned regarding the state of shore housing for sailors. Can you explain the current state of shore housing for sailors? Mr. McGinn. We have, as you know, a public/private venture that is managing our housing. And the level of satisfaction overall, there are always exceptions, but overall is extremely high. I have talked personally with Master Chief Stevens and I think the primary concern that he is hearing from sailors in his travels is a potential for reduction of the BAH. If that is carried through, and it is proposed that it be a 5 percent reduction, that would result in an overall $3.5 billion reduction in funding from BAH sources to the private contractors over the full life of the contracts that are currently in place. So we are looking at this very, very closely about how best to manage it. There are ongoing discussions with the contractors. One thing we want to make sure we avoid is taking the money out of the pockets of sailors and marines and their families and at the same time to make sure that there isn't a decrease in the quality of the housing that they are housed in, from the contractor perspective. Mr. Dent. I would like to recognize myself for 5 minutes. OKINAWA FACILITIES STATUS I guess I will start with Mr. McGinn. I am going to talk a little bit about Okinawa. What is the current status in negotiations with the government of Japan and other countries, such as Australia, Singapore and the Philippines? And can you give the committee an update on the progress that has been made to date there? And then I also want to hear what you think, too, about, you know, what, in your view, constitutes an acceptable conclusion to the Futenma replacement facility issue. Mr. McGinn. Given the complexity of those ongoing negotiations and all of the aspects, I respectfully request to take that question for the record and provide you a more comprehensive answer. Our long-standing agreement with the Government of Japan (GOJ) remains unchanged. The Futenma Replacement Facility (FRF) at Camp Schwab/Henoko is the only option for moving the Marine Corps air wing out of Marine Corps Air Station (MCAS) Futenma. We will relocate from and return MCAS Futenma once the FRF is complete and the facility is fully operational. The Department of Defense refrains from commenting on the legal process of another country to include the recent court- mediated settlement between the Okinawa Prefectural Government and the GOJ regarding FRF construction. On-going Department of Defense negotiations with Australia and the Philippines will help to modernize these alliances and develop a more geographically distributed, operationally resilient, and politically sustainable regional defense posture. This ongoing process does not preclude continuing to train alongside these countries' militaries. The marines have successfully completed a total of four rotations to Australia and the fifth rotation is on track for April 2016. This year's Balikatan exercise in the Philippines will see more complex scenarios than ever. In Singapore, the government continues to make progress on constructing the required facilities to support the implementation of our agreement to forward deploy up to four Littoral Combat Ships in Singapore by 2017. It lies primarily in the responsibility of the folks in policy at the Office of the Secretary of Defense as well as in our own Navy and Marine Corps policy shops. But I will consult with them and make sure we get you a good answer on that. Specifically to the Futenma replacement, the construction activities are ongoing, despite concerns by the governor of Okinawa who I know has spoken with you. And we continue to make sure that whenever there is a possible interaction that can have a positive outcome related to the transfer of land from other bases back to Okinawa, we are doing that, as well as close coordination with the central government in Tokyo to make sure that the project is proceeding apace, considering the difference of opinion by the governor. FORCE STRUCTURE REDUCTIONS AND BRAC Mr. Dent. Let me move to Ms. Hammack. By the end of fiscal year 2017, the Army is reducing the active component force structure to 450,000, I believe. Can you describe the impact of these force structure reductions and what the impact will be across the Army on infrastructure requirements? Ms. Hammack. Thank you, Chairman Dent, for that question. One of the challenges is that as we have reduced force structure, it creates holes on bases. On many of the bases where they might have four brigade combat teams, they go down to three, or if they have three, they go down to two. That means there are empty barracks. That means there are empty company ops facilities. Mr. Dent. More need for BRAC. Ms. Hammack. That means there is more need for a BRAC or a realignment and consolidation. When there is that kind of capability on one of our major installations, that means we can move some smaller missions into that place and shut down an entire facility. As Secretary Ballentine said so well, that is where the real cost savings are. Mr. Dent. Yes. Also, can you give some examples of installations or states that have the greatest challenges as the Army draws down the force? And you know, beginning in what fiscal year will the committee see military construction requirements for this decision, if any that are needed? Ms. Hammack. As the company draws down the force, it certainly reduces the need for military construction. That is why you see our budget right now; less of it is focused on replacing existing buildings, and more of it is focused on COCOM requirements and new missions. The challenge is, though, that the existing buildings become of poorer quality. In the Army, we are seeing an increase in the number of poor and failing buildings every year, as we do not have the funding to sustain the facilities and as we are questioning more what the size of the Army is going to be in the future. EUROPEAN INFRASTRUCTURE CONSOLIDATION IN THE UNITED KINGDOM Mr. Dent. I will quickly move to Ms. Ballentine. The European infrastructure consolidation study produced eight consolidation opportunities for the Air Force. Can you walk the committee through the consolidation in the United Kingdom and give us an estimate of the costs associated with the consolidation and potential savings that will be achieved? So I just visited the U.K. and Croughton, Molesworth, and got a sense of some of the issues that you are working on. I would like the committee to learn a little more about it. Ms. Ballentine. I would be happy to. And I will give you a little bit of an overview here. And if you would like more detail, I am happy to provide that for the record as well. So total costs across the entire continent are about $1.1 billion. We anticipate around $275 to $300 million savings per year. In the U.K. specifically, we have got a number of actions that we are taking. So divesting from Royal Air Force (RAF) Alconbury and (RAF) Molesworth, those should save us about $75 million a year, divesting from (RAF) Mildenhall, which is the big muscle movement, I would say, as Mr. Potochney identified. And that is really that we are moving CV-22s and C-130Js to Spangdahlem Air Base, Germany and moving KC-135 tankers to Ramstein Air Base, Germany. So all of those activities have begun. We do have some of the fiscal year 2017 budget going towards executing those activities. I will actually be visiting myself later on this spring and will be able to get my eyes on those activities. But if you would like further details on that, I am happy to provide it for the record. [The information follows:] The European Infrastructure Consolidation (EIC) will enable the Air Force to fully divest RAF Mildenhall at an estimated cost of $572 million and estimated annual recurring savings of $128 million. Divestitures of RAF Alconbury and RAF Molesworth, United Kingdom will cost an estimated $370 million and save an estimated $74 million per year. Streamlining the level of support at Lajes Air Field, Azores cost approximately $68 million and will save an estimated $35 million each year. Streamlining the support contract at Moron Air Base, Spain cost an estimated $3 million and will save the Air Force approximately $4 million per year. Consolidation of European Data Centers will cost an estimated $60 million and generate an estimated $40 million per year. Through EIC, the Air Force also returned four minor Air Force sites to their host nations (Karup munitions storage, Denmark, RAF Mildenhall ammunition storage and RAF Feltwell housing, United Kingdom; and Siegenburg Range, Germany) at a total cost of less than $1 million and resulting in an estimated savings of less than $1 million per year. Mr. Dent. Thank you. So let me quickly ask one more question, and then I will go right back to the ranking member. I would like to also shift to Guam and the Mariana Islands. The 2017 budget includes about $81 million for Guam Joint Region Marianas Andersen. Are the mission requirements for Joint Region Marianas finalized and budgeted for in the out years? And if not, has the Air Force included a wedge of funding in the future years' defense program to account for future military construction projects? Ms. Ballentine. So we do spend a good portion of our MILCON on combatant commander requirements. And the shift to the Pacific is an important piece of that. The total in our 2017 budget for PACOM is about $132 million. A good portion of that is going to Guam. We are hardening some facilities, building some C4I, which is command, control, communications, computers and a number of other projects. And we do, of course, look across the FYDP in responding to our combatant commanders' requests. Mr. Dent. Mr. Bishop, we recognize you for 5 minutes. Mr. Bishop. Thank you very much. OPTIMIZING INFRASTRUCTURE This will relate to instruments and equipment drawdown. Secretary Hammack, with the ongoing drawdown, can you describe for the committee what your biggest challenges are and how they will affect the Army's construction program? Ms. Hammack. Well, the biggest challenges in drawdown is that they create empty spaces. So we are still maintaining money to operate a base that should be a hundred percent full and it might be 75 percent full or 50 percent full. Our base operating costs are the same, yet we have reduced the military manpower. When we consolidate and we can optimize our infrastructure, we can reduce our costs and then focus the funding on warfighter needs. The biggest concern as we are reducing end strength is that we would like to manage our real estate in response to that. The Army has real estate left over from World War II, when we were a force of 8.3 million, and now we are down to 450,000. We never got rid of all of that excess infrastructure. We are whittling away at it a little bit every year. As Mr. Potochney said, we have never reduced our infrastructure down to the 7 percent or even the 10 percent at which we probably should operate. For the Army, in each round, we are taking out anywhere from 4 to 7 percent with an average of 5 percent each BRAC round. That helps us, but that doesn't get us where we need to be. Technology has given us capabilities in the industrial base and in warfighting where we have simulators that help our soldiers train better. We have consolidated with technologies, but we have not consolidated our footprint. Mr. Bishop. I see. Thank you. Secretary Ballentine, what has been your biggest challenge with facilities as it pertains to the reduction of aircraft? Ms. Ballentine. Well, likewise, reduction of aircraft and squadrons creates holes on our parking pads and in our hangars and the like. So what you see across the Air Force is our squadron sizes are coming down. So rather than a squadron being 24 aircraft, you may see a squadron of 18 aircraft spread across more bases. So for each of those bases, you have got Security Forces that are protecting the bases, you have got gates that you have got to keep open, you have got to finance people and human resources people. So if we can consolidate those squadrons into fewer bases, you can draw down all of that excess cost that we are spreading across, we are sort of peanut butter-spreading, if you will, across our bases, not for optimal operational reasons, but simply to ensure that every base has a mission. Mr. Bishop. Where I come from, peanut butter-spreading is a good thing. [Laughter.] Ms. Ballentine. Likewise in my household. Mr. Bishop. Thank you. FACILITY CONDITIONS AND INSPECTION STANDARDIZED Mr. Dent. I just have one more question, and I will start with Mr. McGinn. But this will end up being for all of you. Mr. McGinn, in your statement you mention that the Navy has taken on an initiative to standardize the facility inspection and facility condition in the [next] process. Please try to explain to the committee how you are achieving your goal and whether or not other Services are following your lead. And I can let the other Services respond to that, but do you want to just talk about how you are doing in the Navy? Mr. McGinn. Yes, sir. Starting about a year-and-a-half ago, we took a look at how best to determine our facilities condition and to prioritize particular parts of those facilities. A simple example would be it is really important that the roof doesn't leak. So roofs are more important than appliances inside the building, walls, structure and decking. And we wanted to make sure that as we looked across our whole installation infrastructure that these priorities were being applied so that we categorized our allocation of sustainability funds into fixing the most critical aspects. This has been something that has been briefed to our service chiefs and their staffs and down through the chains of command. Everybody is very pleased with the fact that we are putting the money against the most critical projects. Mr. Dent. Anybody else want to bite on this one? Ms. Hammack. Ms. Hammack. Certainly. The Army Corps of Engineers did a great job developing a program called BUILDER which is the standardized inspection protocol. It is a means to categorize what the requirements, what the needs are in the building and, as Secretary McGinn said, what kind of quality there is in the facilities. The biggest challenge the Army is facing is finding the funds to have the people to inspect to that building standard. Although we are addressing a small percentage of buildings every year, it will take us quite some time to fully inspect and categorize all of our properties to that standard. Mr. Dent. Ms. Ballentine. Ms. Ballentine. So I would like to get with my experts and come back to you with the details. But I will say that, as you know, the Air Force has just recently stood up the Air Force Installation Mission Support Center. My two counterparts here have had centralized management of installation mission support for quite some time and the Air Force has launched this program in the last couple of years. And the real beauty and opportunity of this type of construct is that it allows us to take an enterprise-wide look at things like facilities so that we won't be just taking a look base by base by base, command by command by command, and not necessarily getting after, from an enterprise perspective, the most important mission-critical worst-first. So that is really the beauty of our new Installation Mission Support Center. [The information follows:] Our Air Force Civil Engineer Center is actively managing the Air Force-wide implementation of the Sustainment Management System (SMS), a suite of web-based software applications developed by the U.S. Army Corps of Engineers to help leadership, facility engineers, and technicians decide when, where, and how to best maintain civil engineer's built infrastructure. The facilities SMS module, BUILDER, has currently baselined 44% of the facility condition assessments for Air Force vertical structures. PAVER, the airfield and other pavements SMS module, has baselined the pavement criteria indexes (PCI) for 100% of our airfields and 48% of other pavements such as roads and parking lots. RAILER, the SMS module that captures the condition of our rail systems, has baselined the condition of 17% of USAF-owned railways. Finally, UTILITIES, the water, wastewater, electrical power, and natural gas SMS module, and FUELER, the fuel distribution system SMS module, are currently under development. The Air Force has the lead on the development of UTILITIES SMS and the initial release of this module is scheduled for the summer of 2017. We are currently using assessment tools within our geographic information systems to perform utility system condition assessments and have completed 51% to date. All of these efforts are focused on improving our asset management processes, complying with Executive Order 13327, and achieving the audit readiness requirements set forth in the Fiscal Year 2010 National Defense Authorization Act by September 2017. Mr. Potochney. Sir, I could just add? Mr. Dent. Mr. Potochney. Mr. Potochney. If I could just add to that? What I think you just heard is we have some pretty good standards and we are working pretty hard at even making them better so that we can spend the money that you are providing to us against the facilities essentially that are worst-first. But we still have too many of them to be spending money on, and that is the current thing. So we are being good stewards of what we are getting here with a systematic approach. But the inventory of buildings that we are taking care of just is simply too much. Mr. Dent. Well, thank you, all. We appreciate all of you being here today and providing, you know, comprehensive testimony. And we may have some additional questions for the record. And I know there are some that you want to get back to us on, which is fine. And we have a vote, as we speak, and so timing is good. So again, I want to thank you all for joining us today. I hope that we will be moving to the markup on this MILCON V.A. bill the week of March 22nd, we hope. That is aspirational, I think, at this point, but that is the hope. So that said, the hearing is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]