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104778 1 (1978-02-05)

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DOCUMENT RESUME


04778 - rB03852261

Additional Cost of thea l1-Volunteer Force. February 5, 1978. 20
Pp.
Testimony before the iente Committee on Armsed Services:
Manpower and Personnel Subcommittee; by Elmer B. Staats,
Comptroller General.'

Contact: Office of tbi Comatroller General.
Organization concernpd: Department of Defari-e.
Congressional Relevance: Senate Committee on Armed Services:
    Manpower and Personnel Subcommittee.

         Using the bdet as a basis for ext.mination, GAO
estimated that the annul cost increase from fisc,%l years 1971
through 1977 attributable to the All-Volunteer Firce (,VF) were
about $.09 billion ini 1971, $1.5 billion in 1972, 33.0 billion
in 1973, $3.3 billion-in 1974, $3.4 billion in 1975, $3.3
billion in 1976, S.8 billion in 1976 transition quarter, and at
least $3.1 billion in 1917. Costs were categorized for
pretilitary service, R   ~itary service, &na postailitary service
and costs attributable to AVF identified in these areas. The
Department of Defense (DOD) reservations about these findings
were that: they do not apswer the question of how such money
vould be saved it the 9ation returned to the draft, estimates
based on congressional testimony focuses attention on costs and
not on savings, the b%4getary approach does not consider future
costs and savings, and certain sections associated vith the
career force should not be attributed to AVF. GAO considered
DOD's estimate of a savings of no more than $500 milJion per
year trom a return to the draft as conservative and questioned
the assumptions used to reach this estimate. The testimony on
which GAO based its conclusions was given by DOD officials over
a period of time and proiided sufficient evidence. GAO
recoqnized the limitations of the budgetary approach but felt
that it was a reasonable way to assess costs and that futuxe
finencial implications were conjectural. GAO disagreed with
DOD's reasonin4 for not attributing to AVF certain costs in
support of th6 career force. (HTW)