Pentagon's Hale Still Optimistic About a Budget 'Micro-Deal'

With sequestration "taking its toll," Hale says that the Congress must move forward and agree to a plan that provides the DOD some stability. By Charles Clark

Chopping defense spending at a time of budget uncertainty poses risks to military readiness that might not be obvious to the general public, the Pentagon’s comptroller said on Thursday. “It’s like buying an insurance policy with a greatly raised deductible -- if you have to make a claim, there will be great regrets,” Defense Undersecretary Robert Hale said at the inaugural Defense One Summit put on by Atlantic Media in Washington.

“In this crazy period of time, the enormous budget uncertainty is taking its toll,” Hale said. “Planning gets replaced by planning, and we don’t know where we’re headed. We don’t do well under any particular plan.”

The comptroller said he remains “cautiously optimistic” that negotiators in Congress will come up with a “micro-deal” that would lift some of sequestration and perhaps limit defense cuts to $20 billion-$25 billion rather than the $50 billion required under the 2011 Budget Control Act. “The specific number is less important than the certainty,” he said.

Hale described how the cuts will substantially risk force readiness, reduce procurement along with investment in research and development, and threaten recruitment and retention of mid- and junior-level talent.

“At the moment, planners are looking at budget ranges that are pretty wide,” Hale said. Budget planning and long-term strategy are being done “concurrently” and coordinated by the same senior leaders doing the coming installment of the Quadrennial Defense Review, he said. “I don’t remember ever seeing this much uncertainty.”

(Read more: After the Shutdown, Uncertainty Still Plagues Pentagon)

Last year, the Pentagon held off planning for sequestration on the assumption that the sword of Damocles might never fall. But Hale said this year the planning has to assume the possibility that across-the-board cuts could continue. He said he has no regrets about the way in which his team and the Obama White House sounded the alarm about the harm from sequestration. “Think of the situation a year ago, when sequestration was postponed two months and the amount changed. Almost all of our planning done a year ago would have been wrong.”

Hale also revealed that he lost a bet with Joint Chiefs of Staff Chairman Gen. Martin Dempsey on whether the shutdown would actually occur. (Hale had to buy Dempsey a bottle of scotch.)

Executing the inevitable cuts will involve trimming procurement as well as research, development, testing and evaluation, which will risk a repeat of the 1990s “procurement holiday” that may be tough to recover from, Hale said.

He also said he worried about the “low morale” of the Pentagon’s civilian workforce due to hiring freezes, pay freezes and the recent shutdown. “People were wondering whether they have a job, and whether they want the job,” he said. He added he pictures many -- particularly non-senior employees -- sitting around the kitchen table with their spouses and wondering “whether we want to go through it again,” especially when the economy is “pepping up” and bringing new recruitment competition from the private sector.

Retirements are evident anecdotally, “but I don’t think there’s an avalanche yet,” he said, “though we could lose some of our best.”

Asked about charges from some in Congress that the Defense Department is “arrogant,” Hale said, “we have a good working relationship. I don’t recall we turned down any meetings. Maybe it’s that we just don’t know some of the information they’d like to have, such as where things are going and what our plans for sequestration are. But frankly,” he added, “we’re feeling our way toward” how to implement the sequester. “They may not like the answers they’re hearing.”

One area where many lawmakers clearly disagree with Pentagon leaders is on President Obama’s proposal for another round of the Base Closure and Realignment Commission. “Yes, we need another BRAC because there’s no practical way to close or realign bases outside of BRAC,” Hale said. “I understand it’s a tough political vote, but it’s an important one.”

Hale expressed frustration with the challenges of getting the Pentagon’s books ready for auditability by coming deadlines set by Congress and the Defense secretary, saying officials have good data on obligated funds but not on cost, and adding, “It is harder than I expected.”

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.