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Cooperative Approaches to Halt Russian Nuclear Proliferation and Improve the Openness of Nuclear Disarmament (Memorandum) [i] (April 2001)

handle is hein.congrec/cbo9708 and id is 1 raw text is: April 16, 2001 Honorable Pete V. Domenici Chairman Committee on the Budget United States Senate Washington, D.C. 20510-6100 Dear Mr. Chairman: Attached is the Congressional Budget Office's (CBO's) response to your letter of December 22, 2000. In that letter, you asked CBO to review existing estimates of the costs of the Department of Defense's (DoD's) role in smaller-scale contingencies (SSCs). SSCs include such operations as limited strikes, peacemaking and peace- keeping, humanitarian assistance, and disaster relief. Most existing estimates suggest that those activities have cost DoD an average of about $3 billion annually over the past 10 years. As CBO's analysis indicates, current estimates of SSC costs focus only on the budgetary effects. Those estimates tally up DoD's expenditures without taking into account the value of lost capabilities for other missions-including homeland defense and major theater warfare-that result from participating in SSCs. The total (budget- ary and nonbudgetary) costs of an SSC can be defined as the increase in DoD spend- ing that would be required if the department engaged in the operation and still maintained the desired level of capabilities for its other missions. Estimates of budgetary costs will understate total SSC costs if, as some observers believe, participating in such operations diminishes DoD's capability to perform other missions. However, some SSCs may enhance DoD's capabilities; in those instances budgetary costs would overstate an SSC's total costs. As you requested, CBO's analysis focuses only on the costs of SSCs. It does not address other issues in the larger debate about SSCs, such as the importance of

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