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1 (2017)

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U.S. GOVERNMENT
INFORMATION
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                  MILITARY CONSTRUCTION AND VETERANS
                    AFFAIRS, AND RELATED AGENCIES APPRO-
                    PRIATIONS FOR FISCAL YEAR 2018


                                    TUESDAY, JUNE 6, 2017

                                                        U.S. SENATE,
                       SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,
                                                             Washington, DC.
                    The subcommittee met at 2:35 p.m. in Room SD-124, Dirksen
                  Senate Office Building, Hon. Jerry Moran (chairman) presiding.
                    Present: Senators Moran, Murkowski, Collins, Boozman, Rubio,
                  Schatz, Tester, and Udall.

                                  DEPARTMENT OF DEFENSE
                  STATEMENT OF HON. PETER J. POTOCHNEY, ACTING ASSISTANT
                      SECRETARY OF DEFENSE FOR ENERGY, INSTALLATIONS AND
                      ENVIRONMENT
                           OPENING STATEMENT OF SENATOR JERRY MORAN
                    Senator MORAN. Good afternoon. I am sorry for the nearly 5
                  minute late start due to votes on the Senate floor, but the sub-
                  committee will come to order.
                    Good afternoon. We meet today to discuss the President's fiscal
                  year 2018 budget requests for Military Construction and Family
                  Housing for the Department of Defense.
                    The request represents a sharp departure from historically low
                  MILCON requests of the past few years. The base budget request
                  is $9.8 billion. It is a 27 percent increase over last year's enacted
                  levels. In addition, the Overseas Contingency Operations, OCO re-
                  quest, is $638 million.
                    After years of our military taking on increasing levels of risk in
                  infrastructure, the MILCON increase is a welcome change. This
                  change does not take place in a vacuum, however. And the fiscal
                  year 2018 budget request, when viewed in its totality, leaves this
                  committee with some difficult decisions to make, on both defense
                  discretionary and non-defense discretionary, both sides of that ledg-
                  er.
                    I don't think it is a stretch to say that this subcommittee will
                  have to find savings and efficiencies and that not every project in
                  the request will be funded when we are all said and done. To this
                  end, I would welcome a dialogue with our witnesses today about
                  large projects that could be funded incrementally. I understand
                  OMB frowns on this practice, but with tight budgets, incremental
                  funding is an effective tool that Congress has at its disposal.

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